Answer:
$52,440
Explanation:
Calculation of what price will the bonds issue
Market rate of 8% ×$57,000
=$4,560
Hence,
$57,000-$4,560
=$52,440
This means that the bonds price will be issue at $52,440
Calculation for Interest payment :
($57,000 × 7% × ½ year) = $1,995
Calculation for the Market interest rate:
8%/2 which is the semi annual periods = 4%
Calculation of the Periods to maturity:
(15 years × 2 periods each year) = 30
Therefore the price that the bonds will be issued is $52,440
