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Case C Case C: James Corporation is planning to issue $1,000,000 worth of bonds with...

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Finance

Case C Case C: James Corporation is planning to issue $1,000,000 worth of bonds with a coupon rate of 5 percent. The bonds mature in 10 years and pay interest annually. All of the bonds were sold on January 1 of this year.

Required:

1. Assume market (yield) rate, 5 percent. Compute the issue (sale) price on January 1 of this year.

2. Assume market (yield) rate, 4 percent. Compute the issue (sale) price on January 1 of this year.

3. Assume market (yield) rate, 6 percent. Compute the issue (sale) price on January 1 of this year.

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