Bond's cash proceeds and Present value of price of bond
Randell Company issues 7%, 10-year bonds with a par value of $150,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 93¼. The straight-line method is used to allocate interest expense. Use the present value Table B.1 and Table B.3. (Round "PV Factor" to 4 decimal places. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Note: Due to rounding of "PV Factor" there will be some dollar value difference between answer obtained for Bond's cash proceeds and Present value of price of bond.
Cash Flow Present Value
Par (maturity) value $
Interest payment
Price of bond $
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