Complete the following 4 questions:

Issue Price

The following terms relate to independent bond issues:

  1. 400 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
  2. 400 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
  3. 820 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
  4. 2,080 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments

Use the appropriate present value table:

PV of $1 and PV of Annuity of $1

Required:

Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.

Situation Selling Price of the Bond Issue
a. $
b. $
c. $
d. $

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