SP18 Chapter 6 Homework Question 6 (of 7) 6. 714 points value: On September 30,

Question

SP18 Chapter 6 Homework Question 6 (of 7) 6. 714 points value: On September 30, 2016, the San Filipo Corporation issued 8% stated rate bonds with a face amount of $100 million. The bonds bonds was 10% Interest is paid sern annually on March 31 and September 30. (E OSI, mature on September 30, 2036 (20 years). The market rate of interest for similar VA of S1. EVAD of S1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds on September 30, 2016 Table values are based on 40 5% n- Cash Flow Interest Principal Amount Present Value Price of bonds References eBook & Resources

Explanation / Answer

Calculate price of bonds :

Table values are based on :

Table values are based on :

n= 40 i= 5% Cash flow Amount Present value Interest 4 68.63636 Principal 100 14.205 Price of bonds 82.84136

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