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Tyler Company’s $500,000 bond issue pays semiannual interest of $16,000 and is due in 20 years. Assume that the market interest rate is 6 percent. Calculate the present value of the bond issue.

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Based on the semiannual interest and the market interest rate, the present value of the bond issue is $523,118.42

What is the bond's present value?

This can be found by the formula:

= Present value of bond semi annual payments + Present value of bond par value

Solving gives:

= (Semiannual interest x Present value interest factor of annuity, 3%, 40 periods) + Present value of bond par value

= (16,000 x 23.115) + 500,000 / (1  + 3%)⁴⁰

= $523,118.42

Find out more on the present value of a bond at https://brainly.com/question/25596583

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