BC Corporation purchased 5, $1,000, 6% bonds of Langley Corporation
BC Corporation purchased 5, $1,000, 6% bonds of Langley Corporation when the
market rate of interest was 8%. Interest is paid semiannually on the bonds, and the bonds mature in 5 years.
Compute the total price paid by ABC Corporation for the bonds showing your calculation for the present value of the principal and the present value of the interest payments.