Answer in step by step with explanation.Don't use Ai and chatgpt 52A company issues bonds with a par value of $480,000. The bonds mature in 5 years and pay 8% annual interest in semiannualpayments. The annual market rate for the bonds is 6%. Compute the price of the bonds on their issue date. The following informationis taken from present value tables:Present value of an annuity (series of payments) for 10 periods at 3%Present value of an annuity (series of payments) for 10 periods at 4%Present value of 1 (single sum) due in 10 periods at 3%Present value of 1 (single sum) due in 10 periods at 4%Table Values are Based on:8.53028.11090.74410.6756n =i=Cash FlowTable ValueAmountPresent ValuePar (maturity) value 480000Interest (annuity)Price of bonds

Semi-annual interest payment amount = annual interest rate/2*par value= 8%/2*$480,000= 4% *…

Answered: 52 A company issues bonds with a par…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 20E

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