"SERIAL BOND ISSUE,PURCHASE PRICE,BUYING at PREMIUM or DISCOUNT. A BOND issue redeemed in a series of installments rather than on a specific redemption date is called a SERIAL ISSUE. FACEVAL1, FACEVAL2, FACEVAL3 are face values of issues #1, #2, #3, respectively. FACRATE% is its nominal or face interest rate. INVRATE% is the investor's desired interest rate. NUMYEAR1, NUMYEAR2, NUMYEAR3 are terms of respective bonds in years from purchase date. PAYMNINT is payment interval in months (=1 for month, =3 for quarter, =6 for semiannully, =12 for annually). REDMVAL1, REDMVAL2, REDEMVAL3 are redemption values in dollars (not as percent of face value.) PERPAYMN is periodic interest payment of issue. PURPRICE is the purchase price of issue. PREMIUM is the amountpaid over redemption value and DISCOUNT is amount paid less than redemption value. A bond issue is bought at a PREMIUM/DISCOUNT if purchase price is greater/less than its REDEMPTION VALUE. *** Answers to problems. *** (a) Set FACEVAL1=50,000, FACEVAL2=50,000, FACEVAL3=100,000, FACRATE%=14,INVRATE%=6, NUMYEAR1=10, NUMYEAR2=12, NUMYEAR3=15, PAYMNINT=6 (6 mo/yr), REDMVAL1= 50,000, REDMVAL2=50,000, REDMVAL3=100,000. Purchase price is PURPRICE=342,027.80 ||(a) A serial bond issue of $200,000 with interest at 14% compounded semiannually is to be redeemed by payments of $50,000 in 10 yrs., $50,000 in 12 yrs., and $100,000 in 15 yrs. Find the purchase price of the issueto yield 6% compounded semiannually. Type , to see answers. Type (F2) to return to helpfile. ''(c) Copyright PCSCC, Inc., 1993."
