If PV tables are used, select the closest answer from the options provided.)

a. $1,738,786

b. $ 809,145

c. $956,804

d. $921,878

a. $1,738,786

b. $ 809,145

c. $956,804

d. $921,878

Asked
1 year ago

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a. $1,738,786

b. $ 809,145

c. $956,804

d. $921,878

**Answer:**

**c. $956,804
**

**Explanation:**

The computation of the issue price of the bond is as follows

Given that

Future value = $800,000

RATE = 6% ÷ 2 = 3%

PMT = $800,000 × 8% ÷ 2 = $32,000

NPER = 15 × 2 = 30

The formula is shown below

**=-PV(RATE;NPER;PMT;FV;TYPE)**

**After applying the above formula, the present value is $956,804**

**hence, the issued price of the bond is $956,804**

**Therefore the correct option is c. **

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