What are the answers? * G calculator - Google Searc x https://newconnect.mheduca

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What are the answers?

* G calculator - Google Searc x https://newconnect.mheducation.com/flow/connect.html Saved Help Save & Exit Submit On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $120 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((EV 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: Amount Present Value Cash Flow Interest Principal Price of bonds

Explanation / Answer

Solution:

Computation of bond price Table values are based on: n= 40 i= 5% Cash flow Table Value Amount Present Value Par (Maturity) Value 0.142046 $120,000,000.00 $17,045,482 Interest (Annuity) 17.159086 $4,800,000.00 $82,363,614 Price of bonds $99,409,096

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