Question 14 (of 21) 14 1000 points Complete the below table to calculate the pri

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Question 14 (of 21) 14 1000 points Complete the below table to calculate the price of a $1.3 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 factorls) from the tables provided. Enter your answers in whole dollars.) 1, Maturity 11 years, interest paid annually, stated rate 10%, effective (market) rate 12% lues are based on: sh Flow Amount Present Value Principal Price of bonds 2. Maturity 8 years, interest paid semiannualy, stated rate 10%, effective (market) rate 12% Amount Present Value Interest FS 4

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Interest amount: Principle 1,300,000 Coupon/stated Rate of interest 10% Frequency of payment(in months) 6 Interest amount 1300000*0.1*6/12= 65000 Present value calculation: yield to maturity/Effective rate 12% Effective interest per period(i) 0.12*6/12= 0.06 Number of interest payments: (n) Years to redemption 11 Interest payments per year 2 Total interest payments(n) 22 Cash flow Discount factor Discounted cash flow Interest payments-Annuity (6%,22 periods) 65,000 12.0416 782,703 Principle payments -Present value (6%,22 periods) 1,300,000 0.2775 360,757 Bond price 1,143,459

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