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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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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
2E 20710411
1E L720on
14 020200
1A0020AE
13 11202
137022EL
11 LEDE02
7:37 PM
O Type here to search
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TABLE
近
TABLE
Transcribed Image Text:: CengageNOWv2 | Online teachin x * wjia03h_ch14_table_3_4.gif (1300 x b. Answered: Determine the procee X A college.cengage.com/geyser/wahlen_9781337788281/images/ch14/wjia03h_ch14_table_3_4.gif E Apps YouTube S Марs M Gmail * News Q Translate 6 My Grades O Untitled document.. E Reading list 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 2E 20710411 1E L720on 14 020200 1A0020AE 13 11202 137022EL 11 LEDE02 7:37 PM O Type here to search 3/29/2021 TABLE 近 TABLE
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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 A college.cengage.com/geyser/wahlen_9781337788281/images/ch14/wjia03h_ch14_table_3_4.gif E Apps YouTube 6 Maps M Gmail * News Q Translate O My Grades 6 Untitled document. E Reading list 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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