Crane Company issues $26400000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 7.0%. Given the following present value factors, what are the proceeds from the bond issue? Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods O $27487261 O $26400000 O $27446108 O $27497828 3.5% 0.84197 0.70892 4.51505 4.0% 0.82193 0.67556 7.0% 8.31661 8.11090 0.71299 0.50835 4.45182 4.10020 7.02358 8.0% 0.68058 0.46319 3.99271 6.71008
Crane Company issues $26400000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 7.0%. Given the following present value factors, what are the proceeds from the bond issue? Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods O $27487261 O $26400000 O $27446108 O $27497828 3.5% 0.84197 0.70892 4.51505 4.0% 0.82193 0.67556 7.0% 8.31661 8.11090 0.71299 0.50835 4.45182 4.10020 7.02358 8.0% 0.68058 0.46319 3.99271 6.71008
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Crane Company issues $26400000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The bonds pay interest
semiannually on June 30 and December 31. The bonds are issued to yield 7.0%. Given the following present value factors, what are the
proceeds from the bond issue?
Present value of a single sum for 5 periods
Present value of a single sum for 10 periods
Present value of an annuity for 5 periods
Present value of an annuity for 10 periods
$27487261
$26400000
$27446108
O $27497828
3.5%
0.84197
4.0%
4.51505
0.82193
0.70892 0.67556
4.45182
8.31661 8.11090
7.0%
0.71299
0.50835
4.10020
7.02358
8.0%
0.68058
0.46319
3.99271
6.71008](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F531d22d6-41e3-4ab6-9b43-fd8dca83c239%2F952878c9-5e49-41b3-99c1-34df9318a921%2Fhtgfsdm_processed.png&w=3840&q=75)
Transcribed Image Text:Crane Company issues $26400000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The bonds pay interest
semiannually on June 30 and December 31. The bonds are issued to yield 7.0%. Given the following present value factors, what are the
proceeds from the bond issue?
Present value of a single sum for 5 periods
Present value of a single sum for 10 periods
Present value of an annuity for 5 periods
Present value of an annuity for 10 periods
$27487261
$26400000
$27446108
O $27497828
3.5%
0.84197
4.0%
4.51505
0.82193
0.70892 0.67556
4.45182
8.31661 8.11090
7.0%
0.71299
0.50835
4.10020
7.02358
8.0%
0.68058
0.46319
3.99271
6.71008
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