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ce amount   Present value of the semiannual interest payments

ce amount   Present value of the semiannual interest payments

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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 Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? Yes or No
 

5.  Compute the price of $42,309,236 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences.

Present value of the face amount  
Present value of the semiannual interest payments  
Price received for the bonds  
Present Value of $1 at Compound Interest Due In n Perlods Perlods 4.0% 4.5% 5% 5.5% 6% 6.5% 7% 1 0.96154 0.95694 0,95238 0.94787 0.94340 0.93897 0.93458 0.90703 0.86384 0.92456 0.91573 0.89845 0.89000 0.88166 0.87344 0.88900 0.87630 0.85161 0.83962 0.82785 0.81630 4. 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.72525 0.70496 0.68533 0.64351 0.60423 0.79031 0.76790 0.74622 0.66634 7 0.73483 0.75992 0.73069 0.71068 0.68744 0.65160 0.66506 0.62275 8 0.70319 0.67684 0.62741 0.58201 9 0.70259 0,67290 0.64461 0.61763 0.59190 0.56735 0.54393 10 0.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 0.64958 0.62460 0.61620 0.58966 0,58468 0.55684 11 0.55491 0.52679 0.50021 0.47509 12 0.52598 0.49697 0.46968 0.44401 13 0.60057 0.56427 0.53032 0.49856 0.46884 0.44102 0.41496 0.50507 0.48102 14 0.57748 0.53997 0.47257 0.44230 0.41410 0.38782 15 0.55526 0.51672 0.44793 0.41727 0.38883 0.36245 0.33873 0.31657 16 0.53391 0.49447 0.45811 0.42458 0.39365 0.36510 17 0.51337 0.47318 0.43630 0.40245 0.37136 0.34281 0.45280 0.43330 0.49363 0.41552 0.32189 0.29586 0.27651 0.25842 18 0.38147 0.35034 19 0.47464 0.39573 0.36158 0.33051 0.30224 20 0.45639 0.41464 0.37689 0.34273 0.31180 0.28380 0.32486 0.30793 21 0.43883 0.39679 0.35894 0.29416 0.26648 0.24151 0.42196 0.37970 0.36335 22 0.34185 0.27751 0.25021 0.22571 23 0.40573 0.32557 0.29187 0.26180 0.23494 0.21095 0.39012 0.34770 0.31007 0.27666 0.24698 0.22060 0.19715 25 0.37512 0.33273 0.29530 0.26223 0.23300 0.20714 0.18425 26 0.36069 0.31840 0.28124 0.24856 0.21981 0.19450 0.17220 0.30469 0.29157 0.27902 0.26700 0.23560 0.22332 0.21168 0.20064 27 0.34682 0.26785 0.20737 0.18263 0.16093 0.25509 0.24295 28 0.33348 0.19563 0.17148 0.15040 0.32065 0.14056 0.13137 29 0.18456 0.16101 30 0.30832 0.23138 0.17411 0.15119 31 0.29646 0.25550 0.22036 0.19018 0.16425 0.14196 0.12277 0.24450 0.23397 0.22390 32 0.28506 0.20987 0.18027 0.15496 0.13329 0.11474 33 0.27409 0.19987 0.17087 0.14619 0.12516 0.10723 0.19035 0.16196 0.15352 34 0.26355 0.13791 0.11752 0.10022 35 0.25342 0.21425 0.18129 0.13011 0.11035 0.09366 40 0.20829 0.17193 0.14205 0.11746 0.09722 0.08054 0.06678 45 0.17120 0.13796 0.11130 0.08988 0.07265 0.05879 0.04761 50 0.14071 0.11071 0.08720 0.06877 0.05429 0.04291 0.03395 Present Value of $1 at Compound Interest Due in n Periods Periods 8% 9% 10% 11% 12% 13% 14% 0.92593 0.91743 0.90909 0,90090 0.89286 0.88496 0.87719 2 0.85734 0.84168 0.82645 0.81162 0.79719 0.78315 0.76947 0.79383 0.77218 0.75131 0.73119 0.71178 0.69305 0.67497 4 0.73503 0.70843 0.68301 0.65873 0.63552 0.61332 0.59208 0.68058 0.64993 0.62092 0.59345 0.56743 0.54276 0.51937 0.63017 0.59627 0.56447 0.53464 0.50663 048032 0.45559 0.58349 0.54703 0.51316 0.48166 0.45235 0.42506 0.39964 8 0.54027 0.50187 0.46651 0.43393 040388 0.37616 0.35056 0.50025 0.46043 0.42410 0.39092 0.36061 0.33288 0.30751 10 0.46319 0.42241 0.38554 0.35218 0.32197 0.29459 0.26974 11 0.42888 0.38753 0.35049 0.31728 0.28748 0.26070 0.23662 12 0.39711 0.35553 0.31863 0.28584 0.25668 0.23071 0.20756 13 0.36770 0.32618 0.28966 0.25751 0.22917 0.20416 0.18207 14 0.34046 0.29925 0.26333 0.23199 0.20462 0.18068 0.15971 15 0.31524 0.27454 0.23939 0.20900 0.18270 0.15989 0.14010 16 0.29189 0.25187 0.21763 0.18829 0.16312 0.14150 0.12289 17 0.27027 0.23107 0.19784 0.16963 0.14564 0.12522 0.10780 18 0.25025 0.21199 0.17986 0.15282 0.13004 0.11081 0.09456 0.23171 0.21455 19 0.19449 0.16351 0.13768 0.11611 0.09806 0.08295 20 0.17843 0.14864 0.12403 0.10367 0.08678 0.07276 21 0.19866 0.16370 0.13513 0.11174 0.09256 0.07680 0.06383 22 0.18394 0.15018 0.12285 0.10067 0.08264 0.06796 0.05599 0.07379 0.06588 23 0.17032 0.13778 0.11168 0.09069 0.06014 0.04911 24 0.15770 0.12640 0.10153 0.08170 0.05323 0.04308 25 0.14602 0.11597 0.09230 0.07361 0.05882 0.04710 0.03779 26 0.13520 0.10639 0.08391 0.06631 0.05252 0.04168 0.03315 27 0.12519 0.09761 0.07628 0.05974 0.04689 0.03689 0.02908 28 0.11591 0.08955 0.06934 0.05382 0.04187 0.03264 0.02551 29 0.10733 0.08215 0.06304 0.04849 0.03738 0.02889 0.02237 30 0.09938 0.07537 0.05731 0.04368 0.03338 0.02557 0.01963 31 0.09202 0.06915 0.05210 0.03935 0.02980 0.02262 0.01722 32 0.08520 0.06344 0.04736 0.03545 0.02661 0.02002 0.01510 33 0.07889 0.05820 0.04306 0.03194 0.02376 0.01772 0.01325 34 0.07305 0.05339 0.03914 0.02878 0.02121 0.01568 0.01162 35 0.06763 0.04899 0.03558 0.02592 0.01894 0.01388 0.01019 40 0.04603 0.03184 0.02209 0.01538 0.01075 0.00753 0.00529 45 0.03133 0.02069 0.01372 0.00913 0.00610 0.00409 0.00275 50 0.02132 0.01345 0.00852 0.00542 0.00346 0.00222 0.00143 Present Value of Ordinary Annuity of $1 per Period Periods 4.0% 4.5% 5% 5.5% 6% 6.5% 7% 0.95238 1.85941 0.94787 1.84632 0.93897 1.82063 1. 0.96154 0.95694 0.94340 0.93458 1.88609 1.87267 1.83339 1.80802 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 4 3.62990 3.58753 3.54595 3.50515 346511 342580 3.38721 4.45182 4.38998 432948 4.27028 4.21236 4.15568 4.10020 6. 5.24214 5.15787 5.07569 4.99553 4.91732 4.84101 4.76654 6.00205 5.89270 5.78637 5.68297 5.58238 548452 5.38929 8. 6.73274 6.59589 646321 6.33457 6.20979 6.08875 5.97130 9 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 10 8.11090 7.91272 7.72173 7.53763 7.36009 7.18883 7.02358 11 8.76048 8.52892 8.30641 8.09254 7.88687 7.68904 7.49867 12 9.38507 9.11858 8.86325 8.61852 8.38384 8.15873 7.94269 13 9.98565 9.68285 9.39357 9.11708 8.85268 8.59974 8.35765 14 10.56312 10.22283 9.89864 9.58965 9.29498 9.01384 8.74547 15 11.11839 10.73955 10.37966 10.03758 9.71225 940267 9.10791 16 11.65230 11.23402 10.83777 10.46216 10.10590 9.76776 9.44665 17 12.16567 11.70719 11.27407 10.86461 10.47726 10.11058 9.76322 11.24607 11.60765 12.65930 12.15999 11.68959 10.82760 10.43247 10.05909 19 13.13394 12.59329 12.08532 11.15812 10.73471 10.33560 20 13.59033 13.00794 1246221 11.95038 11.46992 11.01851 10.59401 21 14.02916 13.40472 12.82115 12.27524 11.76408 11.28498 10.83553 14.45112 13.78442 13.16300 12.58317 12.04158 11.53520 11.06124 14.85684 14.14777 1348857 12.87504 12.30338 11.77014 11.27219 15.24696 14.49548 13.79864 13.15170 12.55036 11.99074 11,46933 15.62208 14.82821 14.09394 13.41393 12.78336 12.19788 11.65358 15.98277 16.32959 13.66250 13.89810 11.82578 11.98671 26 15.14661 14.37519 13.00317 12.39237 14.64303 14.89813 27 15.45130 13.21053 12.57500 28 16.66306 15.74287 14.12142 13.40616 12.74648 12.13711 29 16.98371 16.02189 15.14107 14.33310 13.59072 12.90749 12.27767 30 17.29203 16.28889 15.37245 14.53375 13.76483 13.05868 12.40904 31 17.58849 16.54439 15.59281 14.72393 13.92909 13.20063 12.53181 32 17.87355 16.78889 15.80268 14.90420 14,08404 13.33393 12.64656 33 18.14765 17.02286 16.00255 15.07507 14.23023 1345909 12.75379 12.85401 12.94767 34 18.41120 17.24676 16.19290 15.23703 14.36814 13.57661 35 18.66461 17.46101 16.37419 15.39055 1449825 13.68696 40 19.79277 18.40158 17.15909 16.04612 15.04630 14.14553 13.33171 45 20.72004 19.15635 17.77407 16.54773 15.45583 14.48023 13.60552 50 21.48218 19.76201 18.25593 16.93152 15.76186 14.72452 13.80075 Present Value of Ordinary Annuity of $1 per Period Periods 8% 9% 10% 11% 12% 13% 14% 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 2 1.78326 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666 2.57710 2.53129 2.48685 2.44371 2.40183 2.36115 2.32163 3.31213 3.23972 3.16987 3.10245 3.03735 2.97447 2.91371 3.99271 3.88965 3.79079 3.69590 3.60478 3.51723 3.43308 4.62288 4.48592 4.35526 4.23054 4.11141 3.99755 3.88867 5.20637 5.03295 4.86842 4.71220 4.56376 4.42261 4.28830 8 5.74664 5.53482 5.33493 5.14612 4.96764 4.79677 4.63886 6.24689 5.99525 5.75902 5.53705 5.32825 5.13166 4.94637 10 6.71008 6.41766 6.14457 5.88923 5.65022 5.42624 5.21612 11 7.13896 6.80519 6.49506 6.20652 5.93770 5.68694 5.45273 12 7.53608 7.16073 6.81369 6.49236 6.19437 5.91765 5.66029 13 7.90378 7.48690 7.10336 6.74987 6.42355 6.12181 5.84236 14 8.22424 7.78615 7.36669 6.96187 6.62817 6.30249 6.00207 15 8.55948 8.06069 7.60608 7.19087 6.81086 6.46238 6.14217 16 8.85137 8.31256 7.82371 7.37916 6.97399 6.60388 6.26506 17 9.12164 8.54363 8.02155 7.54879 7.11963 6.72909 6.37286 18 9.37189 8.75563 8.20141 7.70162 7.24967 6.83991 6.46742 19 9.60360 8.95011 8.36492 7.83929 7.36578 6.93797 6.55037 20 9.81815 9.12855 8.51356 7.96333 7.46944 7.02475 6.62313 21 10.01680 9.29224 8.64869 8.07507 756200 7.10155 6.68696 22 10.20074 9.44243 8.77154 8.17574 7.64465 7.16951 6.74294 23 10.37106 9.58021 8.88322 8.26643 7.71843 7.22966 6.79206 24 10.52876 9.70661 8.98474 8.34814 7.78432 7.28288 6.83514 25 10.67478 9.82258 9.07704 8.42174 7.84314 7.32998 6.87293 26 10.80998 9.92897 9.16095 8.48806 7.89566 7.37167 6.90608 27 10.93516 10.02658 9.23722 8.54780 7.94255 7.40856 6.93515 28 11.05108 10.11613 9.30657 8.60162 7.98442 7.44120 6.96066 29 11.15841 10.19828 9.36961 8.65011 8.02181 747009 6.98304 30 11.25778 10.27365 9.42691 8.69379 8.05518 7.49565 7.00266 31 11.34980 10.34280 9.47901 8.73315 8.08499 7.51828 7.01988 32 11.43500 10.40624 9.52638 8.76860 8.11159 7.53830 7.03498 33 1151389 10.46444 9.56943 8.80054 8.13535 7.55602 7.04823 34 11.58693 10.51784 9.60857 8.82932 8.15656 7.57170 7.05985 35 11.65457 10.56682 9.64416 8.85524 8.17550 7.58557 7.07005 40 11.92461 10.75736 9.77905 8.95105 8.24378 7.63438 7.10504 45 12.10840 10.88120 9.86281 9.00791 8.28252 7.66086 7.12322 50 12.23348 10.96168 9.91481 9.04165 8.30450 7.67524 7.13266
Transcribed Image Text:Present Value of $1 at Compound Interest Due In n Perlods Perlods 4.0% 4.5% 5% 5.5% 6% 6.5% 7% 1 0.96154 0.95694 0,95238 0.94787 0.94340 0.93897 0.93458 0.90703 0.86384 0.92456 0.91573 0.89845 0.89000 0.88166 0.87344 0.88900 0.87630 0.85161 0.83962 0.82785 0.81630 4. 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.72525 0.70496 0.68533 0.64351 0.60423 0.79031 0.76790 0.74622 0.66634 7 0.73483 0.75992 0.73069 0.71068 0.68744 0.65160 0.66506 0.62275 8 0.70319 0.67684 0.62741 0.58201 9 0.70259 0,67290 0.64461 0.61763 0.59190 0.56735 0.54393 10 0.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 0.64958 0.62460 0.61620 0.58966 0,58468 0.55684 11 0.55491 0.52679 0.50021 0.47509 12 0.52598 0.49697 0.46968 0.44401 13 0.60057 0.56427 0.53032 0.49856 0.46884 0.44102 0.41496 0.50507 0.48102 14 0.57748 0.53997 0.47257 0.44230 0.41410 0.38782 15 0.55526 0.51672 0.44793 0.41727 0.38883 0.36245 0.33873 0.31657 16 0.53391 0.49447 0.45811 0.42458 0.39365 0.36510 17 0.51337 0.47318 0.43630 0.40245 0.37136 0.34281 0.45280 0.43330 0.49363 0.41552 0.32189 0.29586 0.27651 0.25842 18 0.38147 0.35034 19 0.47464 0.39573 0.36158 0.33051 0.30224 20 0.45639 0.41464 0.37689 0.34273 0.31180 0.28380 0.32486 0.30793 21 0.43883 0.39679 0.35894 0.29416 0.26648 0.24151 0.42196 0.37970 0.36335 22 0.34185 0.27751 0.25021 0.22571 23 0.40573 0.32557 0.29187 0.26180 0.23494 0.21095 0.39012 0.34770 0.31007 0.27666 0.24698 0.22060 0.19715 25 0.37512 0.33273 0.29530 0.26223 0.23300 0.20714 0.18425 26 0.36069 0.31840 0.28124 0.24856 0.21981 0.19450 0.17220 0.30469 0.29157 0.27902 0.26700 0.23560 0.22332 0.21168 0.20064 27 0.34682 0.26785 0.20737 0.18263 0.16093 0.25509 0.24295 28 0.33348 0.19563 0.17148 0.15040 0.32065 0.14056 0.13137 29 0.18456 0.16101 30 0.30832 0.23138 0.17411 0.15119 31 0.29646 0.25550 0.22036 0.19018 0.16425 0.14196 0.12277 0.24450 0.23397 0.22390 32 0.28506 0.20987 0.18027 0.15496 0.13329 0.11474 33 0.27409 0.19987 0.17087 0.14619 0.12516 0.10723 0.19035 0.16196 0.15352 34 0.26355 0.13791 0.11752 0.10022 35 0.25342 0.21425 0.18129 0.13011 0.11035 0.09366 40 0.20829 0.17193 0.14205 0.11746 0.09722 0.08054 0.06678 45 0.17120 0.13796 0.11130 0.08988 0.07265 0.05879 0.04761 50 0.14071 0.11071 0.08720 0.06877 0.05429 0.04291 0.03395 Present Value of $1 at Compound Interest Due in n Periods Periods 8% 9% 10% 11% 12% 13% 14% 0.92593 0.91743 0.90909 0,90090 0.89286 0.88496 0.87719 2 0.85734 0.84168 0.82645 0.81162 0.79719 0.78315 0.76947 0.79383 0.77218 0.75131 0.73119 0.71178 0.69305 0.67497 4 0.73503 0.70843 0.68301 0.65873 0.63552 0.61332 0.59208 0.68058 0.64993 0.62092 0.59345 0.56743 0.54276 0.51937 0.63017 0.59627 0.56447 0.53464 0.50663 048032 0.45559 0.58349 0.54703 0.51316 0.48166 0.45235 0.42506 0.39964 8 0.54027 0.50187 0.46651 0.43393 040388 0.37616 0.35056 0.50025 0.46043 0.42410 0.39092 0.36061 0.33288 0.30751 10 0.46319 0.42241 0.38554 0.35218 0.32197 0.29459 0.26974 11 0.42888 0.38753 0.35049 0.31728 0.28748 0.26070 0.23662 12 0.39711 0.35553 0.31863 0.28584 0.25668 0.23071 0.20756 13 0.36770 0.32618 0.28966 0.25751 0.22917 0.20416 0.18207 14 0.34046 0.29925 0.26333 0.23199 0.20462 0.18068 0.15971 15 0.31524 0.27454 0.23939 0.20900 0.18270 0.15989 0.14010 16 0.29189 0.25187 0.21763 0.18829 0.16312 0.14150 0.12289 17 0.27027 0.23107 0.19784 0.16963 0.14564 0.12522 0.10780 18 0.25025 0.21199 0.17986 0.15282 0.13004 0.11081 0.09456 0.23171 0.21455 19 0.19449 0.16351 0.13768 0.11611 0.09806 0.08295 20 0.17843 0.14864 0.12403 0.10367 0.08678 0.07276 21 0.19866 0.16370 0.13513 0.11174 0.09256 0.07680 0.06383 22 0.18394 0.15018 0.12285 0.10067 0.08264 0.06796 0.05599 0.07379 0.06588 23 0.17032 0.13778 0.11168 0.09069 0.06014 0.04911 24 0.15770 0.12640 0.10153 0.08170 0.05323 0.04308 25 0.14602 0.11597 0.09230 0.07361 0.05882 0.04710 0.03779 26 0.13520 0.10639 0.08391 0.06631 0.05252 0.04168 0.03315 27 0.12519 0.09761 0.07628 0.05974 0.04689 0.03689 0.02908 28 0.11591 0.08955 0.06934 0.05382 0.04187 0.03264 0.02551 29 0.10733 0.08215 0.06304 0.04849 0.03738 0.02889 0.02237 30 0.09938 0.07537 0.05731 0.04368 0.03338 0.02557 0.01963 31 0.09202 0.06915 0.05210 0.03935 0.02980 0.02262 0.01722 32 0.08520 0.06344 0.04736 0.03545 0.02661 0.02002 0.01510 33 0.07889 0.05820 0.04306 0.03194 0.02376 0.01772 0.01325 34 0.07305 0.05339 0.03914 0.02878 0.02121 0.01568 0.01162 35 0.06763 0.04899 0.03558 0.02592 0.01894 0.01388 0.01019 40 0.04603 0.03184 0.02209 0.01538 0.01075 0.00753 0.00529 45 0.03133 0.02069 0.01372 0.00913 0.00610 0.00409 0.00275 50 0.02132 0.01345 0.00852 0.00542 0.00346 0.00222 0.00143 Present Value of Ordinary Annuity of $1 per Period Periods 4.0% 4.5% 5% 5.5% 6% 6.5% 7% 0.95238 1.85941 0.94787 1.84632 0.93897 1.82063 1. 0.96154 0.95694 0.94340 0.93458 1.88609 1.87267 1.83339 1.80802 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 4 3.62990 3.58753 3.54595 3.50515 346511 342580 3.38721 4.45182 4.38998 432948 4.27028 4.21236 4.15568 4.10020 6. 5.24214 5.15787 5.07569 4.99553 4.91732 4.84101 4.76654 6.00205 5.89270 5.78637 5.68297 5.58238 548452 5.38929 8. 6.73274 6.59589 646321 6.33457 6.20979 6.08875 5.97130 9 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 10 8.11090 7.91272 7.72173 7.53763 7.36009 7.18883 7.02358 11 8.76048 8.52892 8.30641 8.09254 7.88687 7.68904 7.49867 12 9.38507 9.11858 8.86325 8.61852 8.38384 8.15873 7.94269 13 9.98565 9.68285 9.39357 9.11708 8.85268 8.59974 8.35765 14 10.56312 10.22283 9.89864 9.58965 9.29498 9.01384 8.74547 15 11.11839 10.73955 10.37966 10.03758 9.71225 940267 9.10791 16 11.65230 11.23402 10.83777 10.46216 10.10590 9.76776 9.44665 17 12.16567 11.70719 11.27407 10.86461 10.47726 10.11058 9.76322 11.24607 11.60765 12.65930 12.15999 11.68959 10.82760 10.43247 10.05909 19 13.13394 12.59329 12.08532 11.15812 10.73471 10.33560 20 13.59033 13.00794 1246221 11.95038 11.46992 11.01851 10.59401 21 14.02916 13.40472 12.82115 12.27524 11.76408 11.28498 10.83553 14.45112 13.78442 13.16300 12.58317 12.04158 11.53520 11.06124 14.85684 14.14777 1348857 12.87504 12.30338 11.77014 11.27219 15.24696 14.49548 13.79864 13.15170 12.55036 11.99074 11,46933 15.62208 14.82821 14.09394 13.41393 12.78336 12.19788 11.65358 15.98277 16.32959 13.66250 13.89810 11.82578 11.98671 26 15.14661 14.37519 13.00317 12.39237 14.64303 14.89813 27 15.45130 13.21053 12.57500 28 16.66306 15.74287 14.12142 13.40616 12.74648 12.13711 29 16.98371 16.02189 15.14107 14.33310 13.59072 12.90749 12.27767 30 17.29203 16.28889 15.37245 14.53375 13.76483 13.05868 12.40904 31 17.58849 16.54439 15.59281 14.72393 13.92909 13.20063 12.53181 32 17.87355 16.78889 15.80268 14.90420 14,08404 13.33393 12.64656 33 18.14765 17.02286 16.00255 15.07507 14.23023 1345909 12.75379 12.85401 12.94767 34 18.41120 17.24676 16.19290 15.23703 14.36814 13.57661 35 18.66461 17.46101 16.37419 15.39055 1449825 13.68696 40 19.79277 18.40158 17.15909 16.04612 15.04630 14.14553 13.33171 45 20.72004 19.15635 17.77407 16.54773 15.45583 14.48023 13.60552 50 21.48218 19.76201 18.25593 16.93152 15.76186 14.72452 13.80075 Present Value of Ordinary Annuity of $1 per Period Periods 8% 9% 10% 11% 12% 13% 14% 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 2 1.78326 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666 2.57710 2.53129 2.48685 2.44371 2.40183 2.36115 2.32163 3.31213 3.23972 3.16987 3.10245 3.03735 2.97447 2.91371 3.99271 3.88965 3.79079 3.69590 3.60478 3.51723 3.43308 4.62288 4.48592 4.35526 4.23054 4.11141 3.99755 3.88867 5.20637 5.03295 4.86842 4.71220 4.56376 4.42261 4.28830 8 5.74664 5.53482 5.33493 5.14612 4.96764 4.79677 4.63886 6.24689 5.99525 5.75902 5.53705 5.32825 5.13166 4.94637 10 6.71008 6.41766 6.14457 5.88923 5.65022 5.42624 5.21612 11 7.13896 6.80519 6.49506 6.20652 5.93770 5.68694 5.45273 12 7.53608 7.16073 6.81369 6.49236 6.19437 5.91765 5.66029 13 7.90378 7.48690 7.10336 6.74987 6.42355 6.12181 5.84236 14 8.22424 7.78615 7.36669 6.96187 6.62817 6.30249 6.00207 15 8.55948 8.06069 7.60608 7.19087 6.81086 6.46238 6.14217 16 8.85137 8.31256 7.82371 7.37916 6.97399 6.60388 6.26506 17 9.12164 8.54363 8.02155 7.54879 7.11963 6.72909 6.37286 18 9.37189 8.75563 8.20141 7.70162 7.24967 6.83991 6.46742 19 9.60360 8.95011 8.36492 7.83929 7.36578 6.93797 6.55037 20 9.81815 9.12855 8.51356 7.96333 7.46944 7.02475 6.62313 21 10.01680 9.29224 8.64869 8.07507 756200 7.10155 6.68696 22 10.20074 9.44243 8.77154 8.17574 7.64465 7.16951 6.74294 23 10.37106 9.58021 8.88322 8.26643 7.71843 7.22966 6.79206 24 10.52876 9.70661 8.98474 8.34814 7.78432 7.28288 6.83514 25 10.67478 9.82258 9.07704 8.42174 7.84314 7.32998 6.87293 26 10.80998 9.92897 9.16095 8.48806 7.89566 7.37167 6.90608 27 10.93516 10.02658 9.23722 8.54780 7.94255 7.40856 6.93515 28 11.05108 10.11613 9.30657 8.60162 7.98442 7.44120 6.96066 29 11.15841 10.19828 9.36961 8.65011 8.02181 747009 6.98304 30 11.25778 10.27365 9.42691 8.69379 8.05518 7.49565 7.00266 31 11.34980 10.34280 9.47901 8.73315 8.08499 7.51828 7.01988 32 11.43500 10.40624 9.52638 8.76860 8.11159 7.53830 7.03498 33 1151389 10.46444 9.56943 8.80054 8.13535 7.55602 7.04823 34 11.58693 10.51784 9.60857 8.82932 8.15656 7.57170 7.05985 35 11.65457 10.56682 9.64416 8.85524 8.17550 7.58557 7.07005 40 11.92461 10.75736 9.77905 8.95105 8.24378 7.63438 7.10504 45 12.10840 10.88120 9.86281 9.00791 8.28252 7.66086 7.12322 50 12.23348 10.96168 9.91481 9.04165 8.30450 7.67524 7.13266
4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of $42,309,236 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Present value of the face amount Present value of the semiannual interest payments Price received for the bonds Feedback Feedback
Transcribed Image Text:4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of $42,309,236 received for the bonds by using the present value tables in Appendix A. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Present value of the face amount Present value of the semiannual interest payments Price received for the bonds Feedback Feedback
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