Use the following information for questions.issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31.The bonds were sold to yield 8%.Table values are:
-The issue price of the bonds is

Question

Use the following information for questions.issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31.The bonds were sold to yield 8%.Table values are: 
-The issue price of the bonds is

Quizplus · Accepted Answer

The issue price of the bonds is calculated based on the present value of the bond's future cash flows, which include both the interest payments and the principal repayment, discounted at the market rate of interest. The correct calculation results in an issue price of $883,560.

Use the Following Information for Questions