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Business, 26.03.2021 22:50 rleiphart1

On January 2, 2021, Masterwear Industries Co. issued $700,000 of 12% bonds, authorized as of the same date. (Annual interest to be paid is $84,000.) Interest of $42,000 is payable in cash semi-annually on June 30 and December 31. The bonds will mature in three years, on December 31, 2023. The bonds were issued at their face amount to United Intergroup, Inc., the lender and sole investor in the bonds, who plans to hold the bonds to their maturity. How to do calculate the present value/price of the bonds?

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