Part Level Submission
Tarawa Limited issued $1,390,000 of 10-year, 5% bonds on January 1, 2015, at a price to yield a market interest rate of 8%. Interest is payable semi-annually on July 1 and January 1. Tarawa has a December 31 year end.
(a) Calculate the bonds’ present value (issue price) on January 1. (Round answer to the nearest whole dollar, e.g. 1,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
Present value (issue price) of the bonds $