Five decimal points used for this questions, for instance: 0.43562 M10-2 Computi

Question

Five decimal points used for this questions, for instance: 0.43562

M10-2 Computing the Price of a Bond Issued at Par LO10-2 Williams Company plans to issue bonds with a face value of $607,500 and a coupon rate of 8 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of S1, PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Determine the issuance price of the bonds assuming an annual market rate of interest of 8 percent. price

Explanation / Answer

Amount PV factor Present value Semi-annual interest 24300 12.46221 302832 Principal 607500 0.37689 228961 Issuance price 531792 Note: Final answer might vary +1 due to rounding off

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.