Seaside issues a bond that has a stated interest rate of 10%, face amount of $50,000, and is due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 12%. What is the issue price of the bond

The issue price of the bond is $46,320

Explanation:

Given;

Face value = $50,000

stated interest rate = 10%

period of duration =  5 years

market rate = 12%

Interest payments are made semi-annually

Price of Bond =  (Present value of face) + (Present value of coupons)

Coupon payments is given as

annual payment = 10% of 50,000  =   $5,000

semi - annual payment = ¹/₂ × $5,000 = $2,500

Price of Bond = $27,919.7 + $18,400.2

                       = $46,320

Therefore, the issue price of the bond is $46,320

answer; i believe the correct answer is (form utility); good luck

answer; management is about coping complexity and leadership is about coping with change; i believe this is correct; ///good luck                                          

(b) management: leadership