[jam287]

I have a few questions and here are the exact wordings of the questions, and could you please show your work to help me learn how this is all done:

1) Johnny pays $100,000 for zero-interest bonds that pay $197,382.27 6 years from today. What is the discount rate associated with the price Johnny paid? (answer in percent)

2) Dan pays $100,000 for an annuity that pays $25,045.65 per year for 5 years starting 1 year from today. What is the discount rate associated with the price Dan paid? (answer in percent)

3)a. Some company issues a 5 year, $10 milllion bond with a 10% stated rate (note: semi-annual interest payments). The marker rate at the time of issuance was 8%. What is the present value of the principal amount?

b. What is the present value of interest payments?

c. What is the market price of the bond?

[jam287]

For 3a that's market rate not marker rate.

[jam287]

Help?

[abomb34]

Hi first timer. Im learning accounting the schedule costs of goods sold and I'm wordering if someone can break it down more for my understanding thanks.