n January 1, 2016, Learned, Inc., issued $70 million face amount of 20-year, 14% stated rate bonds when market interest rates were 16%. The bonds pay interest semiannually each June 30 and December 31 and mature on December 31, 2035 Calculate the proceeds (issue price) of Learned, Inc.'s, bonds on January 1, 2016, assuming that the bonds were sold to provide a market rate of return to the investor. (Round PV factor to 4 decimal places.)
n January 1, 2016, Learned, Inc., issued $70 million face amount of 20-year, 14% stated rate bonds when market interest rates were 16%. The bonds pay interest semiannually each June 30 and December 31 and mature on December 31, 2035 Calculate the proceeds (issue price) of Learned, Inc.'s, bonds on January 1, 2016, assuming that the bonds were sold to provide a market rate of return to the investor. (Round PV factor to 4 decimal places.)
Related questions
The Bradford Company issued 12% bonds, dated January 1, with aface amount of $90 million on January 1, 2016. The bonds mature onDecember 31, 2025 (10 years). For bonds of similar risk andmaturity, the market yield is 14%. Interest is paid semiannually onJune 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1,FVAD of $1 and PVAD of $1) (Use appropriate factor(s) fromthe tables provided.) |
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| 1. | Determine the price of the bonds at January 1, 2016.(Enter your answers whole dollars.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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