Exercise B-12 (Algo) Present value of bonds LO P1, P3 Spiller Corporation plans to issue 12%, 7-year, $540,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated January 1 of the current year and are ssued on that date. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole dollar.) f the market rate of interest for the bonds is 10% on the date of issue, what will be the total cash proceeds from the bond issue? Table Values are Based on: Cash Flow Present (maturity) value Interest (annuity) Total cash proceeds n= 14 5% Table Value $ $ Amount 540,000 270,000 Present Value
Exercise B-12 (Algo) Present value of bonds LO P1, P3 Spiller Corporation plans to issue 12%, 7-year, $540,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated January 1 of the current year and are ssued on that date. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole dollar.) f the market rate of interest for the bonds is 10% on the date of issue, what will be the total cash proceeds from the bond issue? Table Values are Based on: Cash Flow Present (maturity) value Interest (annuity) Total cash proceeds n= 14 5% Table Value $ $ Amount 540,000 270,000 Present Value
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Exercise B-12 (Algo) Present value of bonds LO P1, P3
Spiller Corporation plans to issue 12%, 7-year, $540,000 par value bonds payable that pay interest
semiannually on June 30 and December 31. The bonds are dated January 1 of the current year and are
issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the
tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole
dollar.)
If the market rate of interest for the bonds is 10% on the date of issue, what will be the total cash
proceeds from the bond issue?
Table Values are Based on:
Cash Flow
Present (maturity) value
Interest (annuity)
Total cash proceeds
n =
14
5%
Table Value
$
$
Amount
540,000
270,000
Present Value
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