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 text. (Round your answer to the nearest whole dollar.)

Issue price of the bonds_____________?

I submmited this question previously twince and both times was answer incorrectly please help me

incorrect answers( 8,640,967 & 8,656,546) these two answer are incorrect.

Solution

Amount PV factor Present value Semi-annual Interest 300000 13.59033 4077099 Principal 10000000 0.45639 4563900 Issue price of the bonds 8640999 Issue price of the bonds = $8640999 Note: If PV factor is rounded off to 4 decimal places,issue price will be $8641090