The following information pertains to fox corp.'s issuance of bonds on july 1, 20x8:
face amount $800,000
term 10 years
stated interest rate 9%
interest payment dates annually on july 1
yield 6%
at 6% at 9%
present value of 1 for 10 periods 0.558 0.422
future value of 1 for 10 periods 1.791 2.367
present value of ordinary annuity
of 1 for 10 periods 7.360 6.418
what should be the issue price for this bond?
a. $700.
b. $807.
c. $864.
d. $1,000.

It will be issued at $807 

Explanation:

The bonds will be issued at the sum of the present value of the coupon payment and maturity discounted at the market stated rate of 9%

Coupon Payment:

Coupon payment face valiue x coupon rate:

$1,000 x 6% = $60

time10  years

market stated rate0.09

PV$385.0595  

Maturity present value:

Maturity $1,000.00  

time   10 years  

market rate  0.09

PV   422.41  

We add both values and achieve the market value of the bonds

PV coupon  $ 385.0595  

PV maturity  $ 422.4108    

Total            $ 807.4703  

Rounding we got the right answer as $ 807

answer; /// the above statement is (true);

answer; planning;