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Computing Bond Issue Price Bushman, Inc., issues $400,000 of 9% bonds that pay interest semiannually...

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Accounting

Computing Bond Issue Price Bushman, Inc., issues $400,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the bonds' market rate is: a. 6% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment Answer 221,471.6 Present value of interest payments Answer 111,084 Selling price of bonds Answer 1,067.95 b. 8% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment Answer 0 Present value of interest payments Answer 244,629 Selling price of bonds Answer 343,018

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