com Chapter 14 HW ADG3141-Module 5--Modu E connect Intermediate Accounting 302:

Question

com Chapter 14 HW ADG3141-Module 5--Modu E connect Intermediate Accounting 302: ACCT 302- 01 Fall 2017 NTING Chapter 14 HW Question 17 (of 21) 17. 1 10.00 points A company smiar nsk and maturity is 8%. Interest is paid se i nually At whatprice did the bonds sen issued 9%, 15-year bonds with a face amount of$100 milion. The market yield for bonds of o $1. of $1. FVAD of $1 and PVAD of S1) (Use appropriate factorts) from the tables provided. Enter your answers in whole dollars.) nterest Principal 100,000,000 Price of bonds Cbock my work esc 20

Explanation / Answer

PVAF at N=30, I = 4% = 17.2920

PVF AT N =30 I =4% = 0.30832

Present Value of Bond = $100,000,000*4.5%*17.292 + $100,000,000*0.30832 = $108,646,000

Total Values are based on n = 30 I = 4.00% Cash Flow Amount Present Value Interest $             4,500,000 $        77,814,000 principal $        100,000,000 $        30,832,000 Price of bonds $      108,646,000

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