James Corporation is planning to issue bonds with a face value of $507,000 and a...
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Accounting
James Corporation is planning to issue bonds with a face value of $507,000 and a coupon rate of 6 percent. The bonds mature in 7 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. Compute the issue (sale) price on January 1 of this year for each of the following cases:
Case A: Market interest rate (annual): 4 percent
Case B: Market interest rate (annual): 8.5 percent
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