On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds w

Question

On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $320 million. The bonds mature on September 30, 2038 20 years). The market rate of interest for similar bonds was 10% terest is paid semiani nually or March 31 and September 30. ((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.) Required: Determine the price of the bonds on September 30, 2018. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) Table values are based on Cash Flow Interest Principal Amount Present Value Price of bonds

Explanation / Answer

Table values are based on: n=40 i=5% Cash Flow Amount Present Value Interest 12800000 219636352 Principal 320000000 45456000 Price of bonds 265092352

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