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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
Valuing Bonds Using present Value
e4A. Use the present value tables in Appendix B to calculate the issue price of a
$600,000 bond issue in each of the following independent cases. Assume interest is paid semiannually.
a.   A 10-year, 8 percent bond issue; the market interest rate is 10 percent.
b.   A 10-year, 8 percent bond issue; the market interest rate is 6 percent.
c.   A 10-year, 10 percent bond issue; the market interest rate is 8 percent.
d.  A 20-year, 10 percent bond issue; the market interest rate is 12 percent.
e.   A 20-year, 10 percent bond issue; the market interest rate is 6 percent.
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