Wenger Corporation is issuing $500,000 of 8%, 5-year bonds when potential bond investors want a return of 10%. Interest is payable semiannually. The present value of 1 factors are 4%, .67556 and 5%, .61391. The present value of an annuity factors are 4%, 8.1109 and 5%, 7.72173.
Instructions
Compute the market price (present value) of the bonds.

Question

Quizplus · Accepted Answer

The Answer of Wenger Corporation is issuing $500,000 of 8%, 5-year bonds when potential bond investors want a return of 10%. Interest is payable semiannually. The present value of 1 factors are 4%, .67556 and 5%, .61391. The present value of an annuity factors are 4%, 8.1109 and 5%, 7.72173.
Instructions
Compute the market price (present value) of the bonds.

Wenger Corporation Is Issuing $500,000 of 8%, 5-Year Bonds When