Hodson Corp. purchased 5, $ 1 000
Hodson Corp. purchased 5, $ 1 000,
7% bonds of Simplex Corporation when the market rate of interest was 8%. Interest is paid semiannually on the bonds, and the bonds will mature in six years.
Using the PV function in Excel Superscript ®,compute the price Hodson paid (the present value) on the bond investment.