2. Downing Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2021. The bonds pay interest semi-annually on June 30 and December 31. The bonds are issued toyield 5%. What are the proceeds from the bond issue? 2.5% 3.0% P 5.0% 6.0% Present value of a single sum for 5 .88385 periods .86261 .78353 .74726 .78120 31 Present value of a single sum for 10 periods 4.64583 .74409 .61391 .55839 Present value of annuity for 5 periods Present value of annuity for 10 8.75206 4.57971 4.32948 4.21236 periods 8.53020 7.72173 7.36009

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2. Downing Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2021. The
bonds pay interest semi-annually on June 30 and December 31. The bonds are issued toyield
5%. What are the proceeds from the bond issue?
2.5%
3.0%
P 5.0%
6.0%
Present value of a single sum for 5
.88385
periods
.86261
.78353
.74726
.78120
31
Present value of a single sum for 10
periods
4.64583
.74409
.61391
.55839
Present value of annuity for 5 periods
Present value of annuity for 10 8.75206
4.57971
4.32948
4.21236
periods
8.53020
7.72173
7.36009
Transcribed Image Text:2. Downing Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2021. The bonds pay interest semi-annually on June 30 and December 31. The bonds are issued toyield 5%. What are the proceeds from the bond issue? 2.5% 3.0% P 5.0% 6.0% Present value of a single sum for 5 .88385 periods .86261 .78353 .74726 .78120 31 Present value of a single sum for 10 periods 4.64583 .74409 .61391 .55839 Present value of annuity for 5 periods Present value of annuity for 10 8.75206 4.57971 4.32948 4.21236 periods 8.53020 7.72173 7.36009
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