The Golden Globe Statue Company Limited, based on a demand for strange looking statues is looking for funding to finance the expansion. To facilitate the growth, the company is looking at the following bond issues:
Bond A
Terms
Bond B
$700,000
Face Value
$1,000,000
6.0%
Coupon Rate
7.5%
March 1, 2009
Issue Date
July 1, 2009
March 1, 2029
Maturity Date
July 1, 2024
June 30th, December 31st
Interest Payment Dates
June 30th, December 31st
8.0%
Yield to Maturity
on date bonds issued
5.5%
8. What is the issue price for Bond A? What is the issue price for Bond B?
a)
$561,451 and $1,202,493
b)
$1,202,493 and $561,451
c)
$1,200,752 and $562,546
d)
$562,546 and $1,200,752
9. Independent of the answer to question 8, if the issue price for Bond A was $650,000 and for Bond B, the issue price was $920,000, what is the total amount of interest to be recorded in 2009?
a) $168,700
b) $144,000
c) $70,500
d) $72,283
10.

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For 8 the answear is (A)

Bacuse he gives me N , PMT, I,FV AND I got the PV
THE PROBLEM is in number 9 because he change the numbers and form my answae I have 650000*8%*10/12
920000*5.5%*6/12
Both give me 686330?

That's a little fuzzy to read given the columns are messed up. Columns don't stay. Either use... to push them over where they belong, or attach an Excel sheet or something.