Determining the Proceeds from Bond Issues Madison Corporation is authorized to issue $760,000 of 6-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019. Required: Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.) 1. The bonds to yield 12% $fill in the blank 1 2. The bonds to yield 10% $fill in the blank 2
Determining the Proceeds from Bond Issues Madison Corporation is authorized to issue $760,000 of 6-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019. Required: Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.) 1. The bonds to yield 12% $fill in the blank 1 2. The bonds to yield 10% $fill in the blank 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Determining the Proceeds from Bond Issues
Madison Corporation is authorized to issue $760,000 of 6-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019.
Required:
Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.)
1. The bonds to yield 12% | $fill in the blank 1 |
2. The bonds to yield 10% | $fill in the blank 2 |
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Present Value of 1: Pn,i
(1 + i)"
Present Value of an Ordinary Annuity of 1: Po,n,i
1+i)'
1.5%
4.0%
4.5%
5.0%
5.5%
6.0%
7.0%
0,952381
0.943396 0.934579
1.5%
4.0%
4.5%
5.0%
5.5%
6.0%
7.0%
1
0.985222
0.961538
0.956938
0.947867
1
0.985222
0.961538
0.956938
0.952381
0.947867
0.943396
0.934579
2 0.970662
0.924556
0.915730
0.907029
0.898452
0.889996 0.873439
2
1.955883
1.886095
1.872668
1.859410
1.846320
1.833393
1.808018
0.956317
0.888996
0.876297
0.863838
0.851614
0.839619 0.816298
2.912200
2.775091
2.748964
2.723248
2.697933
2.673012
2.624316
4
0.942184
0.854804
0.838561
0.822702
0.807217 0,792094 0.762895
4
3.854385
3.629895
3.587526
3.545951
3.505150
3.465106
3.387211
0.928260
0.821927
0.802451
0.783526
0.765134
0.747258 0.712986
5
4.782645
4.451822
4.389977
4.329477
4.270284
4.212364
4.100197
0.914542
0.790315
0.767896
0.746215
0.725246
0.704961 0.666342
5.697187
5.242137
5.157872
5.075692
4.995530
4.917324
4.766540
7
0.901027
0.759918
0.734828
0.710681
0.687437
0.665057
0.622750
7
6.598214
6.002055
5.892701
5.786373
5.682967
5.582381
5.389289
0.887711
0.730690
0.703185
0.676839
0.651599
0.627412 0.582012
8
7.485925
6.732745
6.595886
6.463213
6.334566
6.209794
5.971299
9
0.874592
0.702587
0.672904
0.644609
0.617629
0.591898 0.543934
10
0.861667
0.675564
0.643928
0.613913
0.585431
0.558395 0.508349
8.360517
7.435332
7.268790
7.107822
6.952195
6.801692
6.515232
10 9.222185
8.110896
7.912718
7.721735
7.537626
7.360087
7.023582
11
0.848933
0.649581
0.616199
0.584679
0.554911
0.526788 0.475093
12 0.836387 0.624597
0.589664
0.556837
0.525982
11 10.071118
8.760477
8.528917
8.306414
8.092536
7.886875
7.498674
0.496969 0.444012
12 10.907505
9.385074
9.118581
8.863252
8.618518
8.383844
7.942686
13
0.824027
0.600574
0.564272
0.530321
0.498561
0.468839 0.414964
14
0.811849
0.577475
0.539973
0.505068
0.472569
0.442301
0.387817
13 11.731532
9.985648
9.682852
9.393573
9.117079
8.852683
8.357651
14 12.543382 10.563123 10.222825
9.898641
9.589648
9.294984
8.745468
15 0.799852
0.555265
0.516720
0.481017
0.447933
0.417265 0.362446
15 13.343233 11.118387 10.739546 10.379658 10.037581
9.712249
9.107914
16
0.788031
0.533908
0.494469
0.458112
0.424581
0.393646 0.338735
16 14.131264 11.652296 11.234015 10.837770 10.462162 10.105895
9.446649
17
0.776385
0.513373
0.473176
0.436297
0.402447
0.371364
0.316574
17 14.907649 12.165669 11.707191 11.274066 10.864609 10.477260
9.763223
18 0.764912
0.493628
0.452800
0.415521
0.381466
0.350344 0.295864
18 15.672561 12.659297 12.159992 11.689587 11.246074 10.827603 10.059087
19 0.753607
0.474642
0.433302
0.395734
0.361579
0.330513 0.276508
19 16.426168 13.133939 12.593294 12.085321 11.607654 11.158116 10.335595
20
0.742470
0.456387
0.414643
0.376889
0.342729
0.311805
0.258419
20 17.168639 13.590326 13.007936 12.462210 11.950382 11.469921 10.594014
21
0.731498
0.438834
0.396787
0.358942
0.324862
0.294155 0.241513
21 17.900137 14.029160 13.404724 12.821153 12.275244 11.764077 10.835527
22 0.720688
0.421955
0.379701
0.341850
0.307926
0.277505 0.225713
23 0.710037
0.405726
0.363350
0.325571
0.291873
0.261797
0.210947
22 18.620824 14.451115 13.784425 13.163003 12.583170 12.041582 11.061240
23 19.330861 14.856842 14.147775 13.488574 12.875042 12.303379 11.272187
24 0.699544
0.390121
0.347703
0.310068
0.276657
0.246979 0.197147
24 20.030405 15.246963 14.495478 13.798642 13.151699 12.550358 11.469334
25 0.689206
0.375117
0.332731
0.295303
0.262234
0.232999 0.184249
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1
Present Value of 1: Pn,i
(1 + i)"
Present Value of an Ordinary Annuity of 1: Po,n,i
1+i)'
1.5%
4.0%
4.5%
5.0%
5.5%
6.0%
7.0%
0,952381
0.943396 0.934579
1.5%
4.0%
4.5%
5.0%
5.5%
6.0%
7.0%
1
0.985222
0.961538
0.956938
0.947867
1
0.985222
0.961538
0.956938
0.952381
0.947867
0.943396
0.934579
2 0.970662
0.924556
0.915730
0.907029
0.898452
0.889996 0.873439
2
1.955883
1.886095
1.872668
1.859410
1.846320
1.833393
1.808018
0.956317
0.888996
0.876297
0.863838
0.851614
0.839619 0.816298
2.912200
2.775091
2.748964
2.723248
2.697933
2.673012
2.624316
4
0.942184
0.854804
0.838561
0.822702
0.807217 0,792094 0.762895
4
3.854385
3.629895
3.587526
3.545951
3.505150
3.465106
3.387211
0.928260
0.821927
0.802451
0.783526
0.765134
0.747258 0.712986
5
4.782645
4.451822
4.389977
4.329477
4.270284
4.212364
4.100197
0.914542
0.790315
0.767896
0.746215
0.725246
0.704961 0.666342
5.697187
5.242137
5.157872
5.075692
4.995530
4.917324
4.766540
7
0.901027
0.759918
0.734828
0.710681
0.687437
0.665057
0.622750
7
6.598214
6.002055
5.892701
5.786373
5.682967
5.582381
5.389289
0.887711
0.730690
0.703185
0.676839
0.651599
0.627412 0.582012
8
7.485925
6.732745
6.595886
6.463213
6.334566
6.209794
5.971299
9
0.874592
0.702587
0.672904
0.644609
0.617629
0.591898 0.543934
10
0.861667
0.675564
0.643928
0.613913
0.585431
0.558395 0.508349
8.360517
7.435332
7.268790
7.107822
6.952195
6.801692
6.515232
10 9.222185
8.110896
7.912718
7.721735
7.537626
7.360087
7.023582
11
0.848933
0.649581
0.616199
0.584679
0.554911
0.526788 0.475093
12 0.836387 0.624597
0.589664
0.556837
0.525982
11 10.071118
8.760477
8.528917
8.306414
8.092536
7.886875
7.498674
0.496969 0.444012
12 10.907505
9.385074
9.118581
8.863252
8.618518
8.383844
7.942686
13
0.824027
0.600574
0.564272
0.530321
0.498561
0.468839 0.414964
14
0.811849
0.577475
0.539973
0.505068
0.472569
0.442301
0.387817
13 11.731532
9.985648
9.682852
9.393573
9.117079
8.852683
8.357651
14 12.543382 10.563123 10.222825
9.898641
9.589648
9.294984
8.745468
15 0.799852
0.555265
0.516720
0.481017
0.447933
0.417265 0.362446
15 13.343233 11.118387 10.739546 10.379658 10.037581
9.712249
9.107914
16
0.788031
0.533908
0.494469
0.458112
0.424581
0.393646 0.338735
16 14.131264 11.652296 11.234015 10.837770 10.462162 10.105895
9.446649
17
0.776385
0.513373
0.473176
0.436297
0.402447
0.371364
0.316574
17 14.907649 12.165669 11.707191 11.274066 10.864609 10.477260
9.763223
18 0.764912
0.493628
0.452800
0.415521
0.381466
0.350344 0.295864
18 15.672561 12.659297 12.159992 11.689587 11.246074 10.827603 10.059087
19 0.753607
0.474642
0.433302
0.395734
0.361579
0.330513 0.276508
19 16.426168 13.133939 12.593294 12.085321 11.607654 11.158116 10.335595
20
0.742470
0.456387
0.414643
0.376889
0.342729
0.311805
0.258419
20 17.168639 13.590326 13.007936 12.462210 11.950382 11.469921 10.594014
21
0.731498
0.438834
0.396787
0.358942
0.324862
0.294155 0.241513
21 17.900137 14.029160 13.404724 12.821153 12.275244 11.764077 10.835527
22 0.720688
0.421955
0.379701
0.341850
0.307926
0.277505 0.225713
23 0.710037
0.405726
0.363350
0.325571
0.291873
0.261797
0.210947
22 18.620824 14.451115 13.784425 13.163003 12.583170 12.041582 11.061240
23 19.330861 14.856842 14.147775 13.488574 12.875042 12.303379 11.272187
24 0.699544
0.390121
0.347703
0.310068
0.276657
0.246979 0.197147
24 20.030405 15.246963 14.495478 13.798642 13.151699 12.550358 11.469334
25 0.689206
0.375117
0.332731
0.295303
0.262234
0.232999 0.184249
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Table 3 (concluded)
Table 4 (concluded)
8.0%
9.0%
10.0%
12.0%
14.0%
16.0%
18.0%
1
0.925926
0.917431
0.909091
0.892857
0.877193
0.862069 0.847458
n
8.0%
9.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2 0.857339
0.841680
0.925926
0.917431
0.909091
0.892857
0,877193
0.862069
0.847458
0.826446
0.797194
0.769468
0.743163 0.718184
0.772183
0.751315
0.674972
2 1.783265
1.759111
1.735537
1.690051
1.646661
1.605232
1.565642
0.793832
0.711780
0.640658 0.608631
4
0.735030
0.708425
0.683013
0.635518 0.592080
0.552291 0.515789
3
2.577097
2.531295
2.486852
2.401831
2.321632
2.245890
2.174273
5
0.680583
0.649931
0.620921
0.567427
0.519369
0.476113 0.437109
4
3.312127
3.239720
3.169865
3.037349
2.913712
2.798181
2.690062
0.630170
0.596267
0.564474
0.506631
0.455587
0.410442 0.370432
3.992710
3.889651
3.790787
3.604776
3.433081
3.274294
3.127171
6 4.622880
4.485919
4.355261
4.111407
3.888668
3.684736
3.497603
7
0.583490
0.547034
0.513158
0.452349
0.399637
0.353830 0.313925
0.540269
0.501866
0.466507
0.403883
0.350559
0.305025 0.266038
7
5.206370
5.032953
4.868419
4.563757
4.288305
4.038565
3.811528
9
0.500249
0.460428
0.424098
0.360610
0.307508
0.262953 0.225456
8
5.746639
5.534819
5.334926
4.967640
4.638864
4.343591
4.077566
10
0.463193
0.422411
0.385543
0.321973
0.269744
0.226684 0.191064
6.246888
5.995247
5.759024
5.328250
4.946372
4,606544
4.303022
10 6.710081
6.417658
6.144567
5.650223
5.216116
4.833227
4.494086
11
0.428883
0.387533
0.350494
0.287476
0.236617
0.195417 0.161919
12
0.397114
0.355535
0.318631
0.256675
0.207559
0.168463 0.137220
11 7.138964
6.805191
6.495061
5.937699
5.452733
5.028644
4.656005
13
0.367698
0.326179
0.289664
0.229174
0.182069
0.145227 0.116288
12 7.536078
7.160725
6.813692
6.194374
5.660292
5.197107
4.793225
14 0.340461
0.299246
0.263331
0.204620
0.1597 10
0.125195 0.098549
13 7.903776
7.486904
7.103356
6.423548
5.842362
5.342334
4.909513
15 0.315242
0.274538
0.239392
0.182696
0.140096
0.107927 0.083516
14
8.244237
7.786150
7.366687
6.628168
6.002072
5.467529
5.008062
16 0.291890
0.251870
0.217629
0.163122
0.093041 0.070776
15 8.559479
8.060688
7.606080
6.810864 6.142168
5.575456
5.091578
0.122892
17 0.270269
0.231073
0.197845
0.145644
0.107800
0.080207
0.059980
16 8.851369
8.312558
7.823709
6.973986
6.265060
5.668497
5.162354
18 0.250249
0.211994
0.179859
0.130040
0.094561
0.069144 0.050830
17 9.121638
8.543631
8.021553
7.119630
6.372859
5.748704
5.222334
19 0.231712
0.194490
0.163508
0.116107
0.082948
0.059607 0.043077
18 9.371887
8.755625
8.201712
7.249670
6.467420
5.817848
5.273164
20
0.214548
0.178431
0.148644
0.103667
0.072762
0.051385 0.036506
19 9.603599
8.950115
8.364920
7.365777
6.550369
5.877455
5.316241
21
0.198656
0.163698
0.135131
0.092560
0.063826
0.044298 0.030937
20 9.818147
9.128546
8.513564
7.469444
6.623131
5.928841
5.352746
21 10.016803
9.292244
8.648694
7.562006
6.686957
5.973139
5.383683
22 0.183941
0.150182
0.122846
0.082643
0.055988
0.038188 0.026218
23 0.170315
0.137781
0.111678
0.073788
0.049112
0.032920 0.022218
22 10.201044
9.442425
8.771540
7.644646
6.742944
6.011326
5.409901
24 0.157699
0.126405
0.101526
0.065882
0.043081
0.028380 0.018829
23 10.371059
9.580207
8.883218
7.718434
6.792056
6.044247
5.432120
24 10.528758
9.706612
8.984744
7.784316
6.835137
6.072627
5.450949
25
0.146018
0.115968
0.092296
0.058823
0.037790
0.024465 0.015957
26
0.135202
0.106393
0.083905
0.052521
0.033149
0.021091
0.013523
25 10.674776
9.822580
9.077040
7.843139
6.872927
6.097092
5.466906
27 0.125187
0.097608
0.076278
0.046894
0.029078
0.018182 0.011460
26 10.809978
9.928972
9.160945
7.895660
6.906077
6.118183
5.480429
28 0.115914
0.089548
0.069343
0.041869
0.025507
0.015674 0.009712
27 10.935165 10.026580
9.237223
7.942554
6.935155
6.136364
5.491889
28 11. 051078 10116128
9 306567
7 984423
6 960662
6 152038
5.501601
7:39 PM
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Transcribed Image Text:: CengageNOWv2 | Online teachin x
* wjia03h_ch14_table_3_4.gif (1300 x
b. Answered: Determine the procee X
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Table 3 (concluded)
Table 4 (concluded)
8.0%
9.0%
10.0%
12.0%
14.0%
16.0%
18.0%
1
0.925926
0.917431
0.909091
0.892857
0.877193
0.862069 0.847458
n
8.0%
9.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2 0.857339
0.841680
0.925926
0.917431
0.909091
0.892857
0,877193
0.862069
0.847458
0.826446
0.797194
0.769468
0.743163 0.718184
0.772183
0.751315
0.674972
2 1.783265
1.759111
1.735537
1.690051
1.646661
1.605232
1.565642
0.793832
0.711780
0.640658 0.608631
4
0.735030
0.708425
0.683013
0.635518 0.592080
0.552291 0.515789
3
2.577097
2.531295
2.486852
2.401831
2.321632
2.245890
2.174273
5
0.680583
0.649931
0.620921
0.567427
0.519369
0.476113 0.437109
4
3.312127
3.239720
3.169865
3.037349
2.913712
2.798181
2.690062
0.630170
0.596267
0.564474
0.506631
0.455587
0.410442 0.370432
3.992710
3.889651
3.790787
3.604776
3.433081
3.274294
3.127171
6 4.622880
4.485919
4.355261
4.111407
3.888668
3.684736
3.497603
7
0.583490
0.547034
0.513158
0.452349
0.399637
0.353830 0.313925
0.540269
0.501866
0.466507
0.403883
0.350559
0.305025 0.266038
7
5.206370
5.032953
4.868419
4.563757
4.288305
4.038565
3.811528
9
0.500249
0.460428
0.424098
0.360610
0.307508
0.262953 0.225456
8
5.746639
5.534819
5.334926
4.967640
4.638864
4.343591
4.077566
10
0.463193
0.422411
0.385543
0.321973
0.269744
0.226684 0.191064
6.246888
5.995247
5.759024
5.328250
4.946372
4,606544
4.303022
10 6.710081
6.417658
6.144567
5.650223
5.216116
4.833227
4.494086
11
0.428883
0.387533
0.350494
0.287476
0.236617
0.195417 0.161919
12
0.397114
0.355535
0.318631
0.256675
0.207559
0.168463 0.137220
11 7.138964
6.805191
6.495061
5.937699
5.452733
5.028644
4.656005
13
0.367698
0.326179
0.289664
0.229174
0.182069
0.145227 0.116288
12 7.536078
7.160725
6.813692
6.194374
5.660292
5.197107
4.793225
14 0.340461
0.299246
0.263331
0.204620
0.1597 10
0.125195 0.098549
13 7.903776
7.486904
7.103356
6.423548
5.842362
5.342334
4.909513
15 0.315242
0.274538
0.239392
0.182696
0.140096
0.107927 0.083516
14
8.244237
7.786150
7.366687
6.628168
6.002072
5.467529
5.008062
16 0.291890
0.251870
0.217629
0.163122
0.093041 0.070776
15 8.559479
8.060688
7.606080
6.810864 6.142168
5.575456
5.091578
0.122892
17 0.270269
0.231073
0.197845
0.145644
0.107800
0.080207
0.059980
16 8.851369
8.312558
7.823709
6.973986
6.265060
5.668497
5.162354
18 0.250249
0.211994
0.179859
0.130040
0.094561
0.069144 0.050830
17 9.121638
8.543631
8.021553
7.119630
6.372859
5.748704
5.222334
19 0.231712
0.194490
0.163508
0.116107
0.082948
0.059607 0.043077
18 9.371887
8.755625
8.201712
7.249670
6.467420
5.817848
5.273164
20
0.214548
0.178431
0.148644
0.103667
0.072762
0.051385 0.036506
19 9.603599
8.950115
8.364920
7.365777
6.550369
5.877455
5.316241
21
0.198656
0.163698
0.135131
0.092560
0.063826
0.044298 0.030937
20 9.818147
9.128546
8.513564
7.469444
6.623131
5.928841
5.352746
21 10.016803
9.292244
8.648694
7.562006
6.686957
5.973139
5.383683
22 0.183941
0.150182
0.122846
0.082643
0.055988
0.038188 0.026218
23 0.170315
0.137781
0.111678
0.073788
0.049112
0.032920 0.022218
22 10.201044
9.442425
8.771540
7.644646
6.742944
6.011326
5.409901
24 0.157699
0.126405
0.101526
0.065882
0.043081
0.028380 0.018829
23 10.371059
9.580207
8.883218
7.718434
6.792056
6.044247
5.432120
24 10.528758
9.706612
8.984744
7.784316
6.835137
6.072627
5.450949
25
0.146018
0.115968
0.092296
0.058823
0.037790
0.024465 0.015957
26
0.135202
0.106393
0.083905
0.052521
0.033149
0.021091
0.013523
25 10.674776
9.822580
9.077040
7.843139
6.872927
6.097092
5.466906
27 0.125187
0.097608
0.076278
0.046894
0.029078
0.018182 0.011460
26 10.809978
9.928972
9.160945
7.895660
6.906077
6.118183
5.480429
28 0.115914
0.089548
0.069343
0.041869
0.025507
0.015674 0.009712
27 10.935165 10.026580
9.237223
7.942554
6.935155
6.136364
5.491889
28 11. 051078 10116128
9 306567
7 984423
6 960662
6 152038
5.501601
7:39 PM
P Type here to search
3/29/2021
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