A company issued 8%, 10-year bonds with a face amount of $100million. The market yield for bonds of similar risk and maturity is6%. Interest is paid semiannually. At what price did the bondssell? (FV of $1, PV of $1,FVA of $1, PVA of $1, FVAD of $1 and PVADof $1) (Use appropriate factor(s) from the tablesprovided
N= i = cash flow amount present value interest = = principal = = price of bonds =
| A company issued 8%, 10-year bonds with a face amount of $100million. The market yield for bonds of similar risk and maturity is6%. Interest is paid semiannually. At what price did the bondssell? (FV of $1, PV of $1,FVA of $1, PVA of $1, FVAD of $1 and PVADof $1) (Use appropriate factor(s) from the tablesprovided
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Related questions
A company issued 4%, 10-year bonds with a face amount of $78million. The market yield for bonds of similar risk and maturity is5%. Interest is paid semiannually. At what price did the bondssell? (FV of $1,PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVADof $1) (Use appropriate factor(s) from the tables provided.Enter your answers in whole dollars.)
| Table values are based on | ||
|---|---|---|
| n= | X | |
| i= | X | |
| Cashflow | Amount | Present value |
| Interest | X | X |
| Principle | X | X |
| Price of bonds | X |
| PLEASE ANSWER ALL BLANKS On June 30, 2016, Singleton Computers issued 9% stated ratebonds with a face amount of $200 million. The bonds mature on June30, 2031 (15 years). The market rate of interest for similar bondissues was 8% (4.0% semiannual rate). Interest is paid semiannually(4.5%) on June 30 and December 31, beginning on December 31, 2016.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of$1) (Use appropriate factor(s) from the tablesprovided.) |
| Required: | ||||||||||||||||||||||||||||||||||||||||||||||
| 1. | Determine the price of the bonds on June 30, 2016.
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