I-17.

03

Use the following robot to calculate the initial issue price of a $1,000 bond that pays interest
semiannually. Use the pick list associated with the first boxed area to select the bond's life, in
years. Use the pick list associated with the second boxed area to select the stated annual interest
rate. Use the pick list associated with the third boxed area to select the market rate of interest at
the time of the bond's initial issuance.

Enter the life of the bond in years >>>> 5

Enter the stated interest rate per annum >>>> 8%

Enter the market rate of interest at the time of issue >>>> 8%

Calculated Value of Bond:

The bond's issue price should be >>>> $ 1,000.00