Complete the below table to calculate the price of a $1.9 million bond issue under each of the following independent assumptions (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 tables provided.):
1. Maturity 12 years, interest paid annually, stated rate 10%, effective (market) rate 12%
2. Maturity 9 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%
3. Maturity 6 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
4. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
5. Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%
Maturity 12 years, interest paid annually, stated rate 10%, effective (market) rate 12%. (Round your answers to the nearest whole dollar.)
Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
Complete the below table to calculate the price of a $1.9 million bond issue under each of the following independent assumptions (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 tables provided.):
1. Maturity 12 years, interest paid annually, stated rate 10%, effective (market) rate 12%
2. Maturity 9 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%
3. Maturity 6 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
4. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
5. Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%
Maturity 12 years, interest paid annually, stated rate 10%, effective (market) rate 12%. (Round your answers to the nearest whole dollar.)
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Related questions
| 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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Universal Foods issued 12% bonds, dated January 1, with a faceamount of $225 million on January 1, 2016. The bonds mature onDecember 31, 2025 (10 years). The market rate of interest forsimilar issues was 14%. Interest is paid semiannually on June 30and December 31. Universal uses the straight-line method. (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 at January 1, 2016.(Enter your answer in whole dollars.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 5. | What is the amount(s) related to the bonds that Patey willreport in its balance sheet at December 31, 2016? ////////////
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