Homework: Chapter 7 Homework Score: 0 of 1 pt E7-22 (similar to Save 3 of 22 (19

Question

Homework: Chapter 7 Homework Score: 0 of 1 pt E7-22 (similar to Save 3 of 22 (19 complete) HW Score: 77.27%, 17 of 22 pts Question Help Requirement Determine the bond issue proceeds for each of the bonds payable below. All bonds are issued on January 1, 2016. (Click the icon to view the Future (Click the icon to view the Present Value of $1 table.) Click the icon to view the Future ( Value of an Ordinary Annuity table.) Click the icon to view the Future(Click the icon to view the Prosent Value of an Annuity Due table.)Value of an Annuity Due tabie.) Value of $1 table.) (Click the icon to view the bonds payable.) (Click the icon to view the Present Value of an Ordinary Annuity table.) a. Brandy Corporation issued bonds in the amount of $1,210,000 that will be paid in 7 years. Interest of $12,100 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June 30, 2016. If the market rate of interest is 12%, what is the amount of the bond issue proceeds? (Use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XxXxxx. Round your final answer to the nearest cent, SX.XX) The bond issue proceeds are $ Enter any number in the edit fields and then click Check Answer

Explanation / Answer

Amount PV factor Present value Semi-annual interest 12100 9.29498 112469.26 Principal 1210000 0.4423 535183.00 Bond issue proceeds 647652.26 The Bond issue proceeds are $647652.26

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.