Mufala Inc will issue 10000000 of 6 10year bonds The market

Mufala, Inc., will issue $10,000,000 of 6% 10-year bonds. The market rate for bonds with similar risk and maturity is 8%. Interest will be paid by Mufala semiannually. What is the issue price of the bonds? (Refer to the appropriate table in the Present and Future Value Tables section of your tex

Issue price of the bonds__________ ?

hello please help me to answer this problem I previously submitted this question and the answer was giving incorrect $8,656,546

issue price of the bond = 3%* of 10000000*PVIFA (4,10) + 10000000*PVIF(4,10)

= 300000*13.59032634 + 0.456387*10000000

= 4077097.903 + 4563869

= 8640967

detailed solution will be as follows -

Please note all values are in $.

in case of further clarification/worng answer please comment.

Year	Semiannual	Discounting @4%	PV
1	300000	0.961538	288461.5
2	300000	0.924556	277366.9
3	300000	0.888996	266698.9
4	300000	0.854804	256441.3
5	300000	0.821927	246578.1
6	300000	0.790315	237094.4
7	300000	0.759918	227975.3
8	300000	0.73069	219207.1
9	300000	0.702587	210776
10	300000	0.675564	202669.3
11	300000	0.649581	194874.3
12	300000	0.624597	187379.1
13	300000	0.600574	180172.2
14	300000	0.577475	173242.5
15	300000	0.555265	166579.4
16	300000	0.533908	160172.5
17	300000	0.513373	154012
18	300000	0.493628	148088.4
19	300000	0.474642	142392.7
20	300000	0.456387	136916.1
20	10000000	0.456387	4563869
		Total	8640967

Mufala, Inc., will issue $10,000,000 of 6% 10-year bonds. The market rate for bonds with similar risk and maturity is 8%. Interest will be paid by Mufala semian

Mufala Inc will issue 10000000 of 6 10year bonds The market

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