Lovelylatin15
Apr 1, 2007, 06:25 PM
Can you help please?
On Jan 1 a company issues bonds with a par value of $300,000. The bonds mature in 5 years and pay 8% annual interest each June 30 and Dec 31. On the issue date, the market rate of interest is 6%. Compute the price of the bonds on the issue date. The following information is taken from present value tables:
Present Value of annuity for 10 periods at 3%... 8.5302
Present Value of annuity for 10 periods at 4%... 8.1109
Pressent value of 1 due in 10 periods at 3%... 0.7441
Pressent value of 1 due in 10 periods at 4%... 0.6756
On Jan 1 a company issues bonds with a par value of $300,000. The bonds mature in 5 years and pay 8% annual interest each June 30 and Dec 31. On the issue date, the market rate of interest is 6%. Compute the price of the bonds on the issue date. The following information is taken from present value tables:
Present Value of annuity for 10 periods at 3%... 8.5302
Present Value of annuity for 10 periods at 4%... 8.1109
Pressent value of 1 due in 10 periods at 3%... 0.7441
Pressent value of 1 due in 10 periods at 4%... 0.6756