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16.  $_____________(rounded to nearest dollar)  A ten year bond issue with a face amount of $100,000 bears interest...

16.  $_____________(rounded to nearest dollar)  A ten year bond issue with a face amount of $100,000 bears interest at the rate of 6.9%. The current market rate of interest is 7.0%.  Determine the issue price of this annual bond.

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Answer #1
$99,297.70
Present value of Bond Face Value $50,835
$100,000 x 0.50835 i.e. (PVF 10, 7%)
Present value of Bond Interest $48,463
$6,900 x 7.02358
$99,297.70
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