The following terms relate to independent bond issues:
500 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments.
500 bonds; $1,000 face value; 8% stated rate; 5 years; semi-annual interest payments.
800 bonds; $1,000 face value; 8% stated rate; 10 years; semi-annual interest payments.
2,000 bonds; $500 face value; 12% stated rate; 15 years; semi-annual interest payments.
Required:
Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. Refer to the tables above for present value factors.

The price of a bond is determined by discounting the expected cash flows to their present value using the discount (market) rate.

This can be achieved by calculating the present value of the bond using the present value annuity factor, table.

We can also use an online finance calculator as follows:

Data and Calculations:

Market rate = 10%

First Bond Issuance:

N (# of periods) = 5 years

I/Y (Interest per year) = 10%

PMT (Periodic Payment) = $80 ($1,000 x 8%)

FV (Future Value) = $0

Results:

PV = $303.26

Sum of all periodic payments = $400 ($80 x 5)

Total Interest = $96.74

Second Bond Issuance:

N (# of periods) = 10 (5 years x 2)

I/Y (Interest per year) = 10%

PMT (Periodic Payment) = $40 ($1,000 x 8% x 1/2)

FV (Future Value) = $0

Results:

PV = $308.87

Sum of all periodic payments = $400 ($80 x 5)

Total Interest = $91.13

Third Bond Issuance:

N (# of periods) = 20 (10 years x 2)

I/Y (Interest per year) = 10%

PMT (Periodic Payment) = $40 ($1,000 x 8% x 1/2)

FV (Future Value) = $0

Results:

PV = $498.49

Sum of all periodic payments = $800 ($40 x 20)

Total Interest = $301.51

Fourth Bond Issuance:

N (# of periods) = 30 (15 years x 2)

I/Y (Interest per year) = 12%

PMT (Periodic Payment) = $30 ($500 x 12% x 1/2)

FV (Future Value) = $0

Results:

PV = $282.81

Sum of all periodic payments = $900 ($30 x 30)

Total Interest = $617.19

Learn more about determining the price of a bond at https://brainly.com/question/15567868

#SPJ1