Requirement 1 . Determine the present value of seven-year bonds payable with fac

Question

Requirement 1 . Determine the present value of seven-year bonds payable with face value of $93,000 and stated interest rate of 10%, paid semann Present Value Requirement 2. Same bonds payable as in requirement to the market n ferest rate s 1 6% Round inte medary calculations and final answer to the Requirement 3. Same bonds payableiasimrequrement ound unterinediary calculations and final answer to the near arestate 15 8% Present Value when market rate of interest is,8%,a Enter any number in the edit fields and then click Check Answer Clear All All parts showing

Explanation / Answer

semiannual interest = 93000*.10*6/12=4650

semiannual months = 7*2=14

case c)semiannual yield : 8*6/12 =4%

Price : [PVA 4% ,14 *Interest ] +[PVF 4%,14 *face value]

= [10.563 * 4650] + [.577*93000]

= 49117.95+ 53661

= 102778.95 [rounded to 102,779]

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