# accounting

On December 31, 2008, University Theatres issued \$500,000 face value of bonds. The stated rate is 6 percent, and interest is paid semiannually on June 30 and December 31. The bonds mature in 10 years.

Required:

If required, round your answers to the nearest whole dollar. Follow the format shown in present value tables as you complete the requirements below.

a. Assuming the market rate of interest is 4 percent, calculate at what price the bonds are issued.
b. Assuming the market rate of interest is 8 percent, calculate at what price the bonds are issued.

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