Exercise 5-21 (Algo) Price of a bond [LO5-9, 5-10] On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $260 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Time values are based on: n = 40 ¡= 5% Cash Flow Amount Present Value Interest Principal Price of bonds $ 215,386,375
Exercise 5-21 (Algo) Price of a bond [LO5-9, 5-10] On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $260 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Time values are based on: n = 40 ¡= 5% Cash Flow Amount Present Value Interest Principal Price of bonds $ 215,386,375
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 5-21 (Algo) Price of a bond [LO5-9, 5-10]
On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $260 million. The bonds mature
on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31
and September 30.
Required:
Determine the price of the bonds on September 30, 2024.
Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Time values are based on:
n =
40
¡=
5%
Cash Flow
Amount
Present Value
Interest
Principal
Price of bonds
$
215,386,375](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F558d0ae9-74e6-4ef1-af71-26994b72cc76%2F5de91835-99ac-4c56-99bd-14e80a8e21f0%2Fibudq5w_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 5-21 (Algo) Price of a bond [LO5-9, 5-10]
On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $260 million. The bonds mature
on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31
and September 30.
Required:
Determine the price of the bonds on September 30, 2024.
Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Time values are based on:
n =
40
¡=
5%
Cash Flow
Amount
Present Value
Interest
Principal
Price of bonds
$
215,386,375
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