On January 1, 2021, Callahan Auto issued $900,000 of 9%, 10-year bonds. Interest is payable semiannually on June 30 and December 31.
What is the issue price if the bonds are sold to yield 8%? Follow the format shown in Present Value tables as you complete the requirement. If required, round your calculations and final answer to the nearest whole dollar.
Transcribed Image Text: 93719
Future Value of a Single Amount FV= 1(1+i)"
n/i
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
12%
14%
16%
18%
20%
25%
30%
1.25000
1.56250
1.95313
2.44141
3.05176
3.81470
4.76837
5.96046
7.45058
9.31323
11.64153
14.55192
18.18909
22.73737
1.08000
1.16640
1.09000
1.18810
1.29503
1.41158
1.16000
1.34560
1.56090
1.81064
2.10034
2.43640
2.82622
3.27841
1,10000
1.14000
1.01000
2 1.02010 1.04040 1.06090 1.08160 1.10250 1.12360 1.14490
3 1.03030 1.06121 1.09273 1.12486 1.15763 1.19102 1.22504
4 1.04060 1.08243 1.12551 1.16986 1.21551 1.26248 1.31080
5 1.05101 1.10408 1.15927 1.21665 1.27628 133823 1.40255
6 1.06152 1.12616 1.1940S 1.26532 1.34010 141852 1.50073
7 1.07214 1.14869 1.22987 1.31593 1.40710 1.50363 1.60578
8 1.08286 1.17166 1.26677 1.36857 1.47746 159385 1.71819
9 1.09369 1.19509 1.30477 1,42331 1.55133 1.68948
1.30000
1.69000
2.19700
2.85610
3.71293
4.82681
6.27485
8.15731
10.60450
13.78585
17.92160
2329809
30 28751
39.37376
1.02000 1.03000 1.04000 1,05000 1.06000 1.07000
1.12000
1.18000
1.39240
1.64303
1.20000
1.29960
1,44000
1.25971
1.36049
146933
1.58687
1.71382
1.85093
1.99900
1.21000 1.25440
1.33100 1.40493
1.46410 1.57352
1.61051 1.76234
1.77156 1.97382
1.48154
1.68896
1.92541
2.19497
1.72800
2.07360
2.48832
1.93878
2.28776
2.69955
3.18547
3.75886
443545
5.23384
6.17593
7.28759
8.59936
10.14724
1.53862
1.67710
1.82804
1.99256
2.17189
2.98598
3.58318
4.29982
5.15978
6.19174
1.94872 221068
2.14359 2.47596
2.50227
2.85259
3.25195
3.70722
4.22623
4.81790
5.49241
626135
2.35795 2.77308
3.80296
10 1.10462 1.21899 1.34392 1.48024 1.62889 1.79085 1.96715 2.15892
11 1.11567 1.24337 1.38423
1.12683 1.26824 1,42576 1.60103 1.79586 2.01220 225219
2.36736
2.58043
281266
3.06580
2.59374 3.10585
2.85312 3.47855
3.13843 3.89598
3.45227
3.79750
4.41144
2.33164
2.51817
2.71962
5.11726
5.93603
6.88579
7.98752
9.26552
7.43008
8.91610
10.69932
12 83918
1.53945 1.71034 1.89830 2.10485
12
13
1.13809 1.29361 1,46853 1.66507 1.88565 2.13293 2.40985
14 1.14947 1.31948 1.51259 1.73168 1.97993 226090 257853
15 1.16097 1 34587 1.55797 1.80094 2.07893 239656 2.75903
3.34173
3.64248
397031
4 B8711
5 47357
413039
15.40702
18.48843
3.17217
3.42594
3.70002
3.99602
4.31570
4.66096
21 1.23239 1.51567 1.86029 2.27877 2.78596 3.39956 4.14056 5.03383
22 1.24472 1.54598 1.91610 2.36992 2.92526 3.60354 4.43040 5.43654
4.17725
7.13794
11.97375
28.42171
35 52714
44.40892
55.51115
69 38894
86.73617
46.00512 108.42022
55.20614 135 52527
51.18589
254035 295216
66.54166
86 S0416
4.59497
10 74800
12.46768
14.46251
8.61276 12.05569 16.77652
13.74349 19.46076
1,17258 1,37279 1.40471 187298 2.18287
8.13725
14.12902
16.67225
19.67325
23.21444
27.39303
16
4.32763
4.71712
5.14166
560441
6.10881
5.05447
5.55992
6.11591
6.72750 9.64629
22.18611
17 1.18430 1,40024 1,65285
18 1.19615 1.42825 1.70243 2.02582 2.40662
19 1.20811 1.45681 1.75351 2.10685 2.52695 3.02560 3.61653
20 1.22019 1.48595 1.80611 2.19112 2.65330 3.20714 3.86968
1.94790 2.29202 2.69277 3.15882
6.86604
9.27646
26.62333
31.94800
38.33760
2.85434
3.37993
7.68997 10.57517
112.45541
146.19203
190 04946
247.06453
321.18389
7.40025 10.80385 15.66758 22.57448
8.14027 12.10031 17.86104 26.18640
95430 13.5s235 20 36158
32.32378
6.65860
38.14206
30 37622
23 1.25716 1,57690 1,97359
24 1.26973 1.60844 2.03279 2.56330 3.22510 4.04893 5,07237
246472 3.07152 381975
66.24737 169.40659
79.49685 211 75824
7.25787
412.53905
5.87146
6.34118
6.84848
45.00763
53.10901
62 66863
73.94898
87.25980
102.96656
121.50054
143.37064
23.21221
10.83471 17.00006 26.46192 40.87424
542.80077
705.64100
917.33330
9.84973 15.17863
35.23642
25 1.28243 1.64061 2.09378 2.66584 3.38635 429187 5.42743
26 1.29526 1.67342 2.15659 2.77247 3.55567 454938 5.80735
27 1.30821 1.70689 222129 2.88337 3.73346 482235 621387
7.91108
8.62308
9.39916 11.91818 19.04007 30.16658 47.41412
10.24508
7.39635
7.98806
8.62711 11.16714 14.42099 23.88387 39.20449 63.80044
9.31727 12.17218 15.86309 26.74993 44.69312 74.00851
95.39622 264 69780
114.47546 330 87225
137.37055 413.59031
164.84466 516.98788
197.81359 646.23485 2015.38126
237 37631 807.79357 2619.99564
13.10999 21.32488 34.38991 55.00038
1192.53329
1550 29328
28 1.32129 1.74102 2.28793 2.99870 3.92013 5.11169 6.64884
29 1.33450 1.77584 2.35657 3.11865 4.11614 5.41839 7.11426
30 1.34785 1.81136 242726 3.24340 4.32194 5.74349 7.61226 10.06266 13.26768 17,44940 29.95992 50.95016 85.84988
1.8
Present Value of a Single Amount PV=
(1+i)"
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
12%
14%
16%
18%
20%
25%
30%
0.80000
0.92593
0.85734
0.79383
0.73503
0.68058
0.63017
0.58349
0.83333
0.69444
0.57870
051579 0.48225
0.40188
0.33490
027908
023257
0.19381
0.16151
1.
0.96154
0.92456
0.95238
0.90703 0.89000
0.94340 093458
0.87344
0.91743 0.90909 0.89286
0.76923
0.59172
0.45517
0.40960 0.35013
0.26933
0.20718
0.15937
0.12259
0.09430
0.99010 0.98039 0.97087
0.98030 0.96117 0.94260
0.97059 0.94232 0.91514 0.88900 0.86384 0.83962 0.81630
0.96098 0.9238s 0.88849
0.95147 0.90573
0.94205
0.93272
0.92348
0.91434
0.90529
0.89632
0.88745
0.87866
0.86996
0.86135
0.85282
0.84438
0.83602
0.82774
0.84168 0.82645 0.79719 076947
0.77218 0.75131 0.71178 0.67497 0.64066
0.68301 063552
0.87719 0.86207
0.74316
0.84746
0.71818
0.60863
0.64000
051200
0.55229
051937 0.47611
041044
0.35383
0.85480
0.82193
0.82270
0.78353
0.74622
0.71068
067684
0.79209 0.76290
0.70843
0.59208
0.86261
0.83748
0.81309
0.78941
0.43711
0.74726 0.71299
0.66634
0.62275
058201
0.54393
0.50835
047509
0.44401
0.41496
0.38782
036245
0.33873
031657
0.64993 0.62092 0.56743
0.56447
0.51316
0.46651
0.59627
054703
050187
0.46043
042241
0.32768
0.26214
0.20972
0.16777
0.13422
0.10737
0.88797
0.87056
0.85349
0.70496
0.66506
062741
0.45559
0.79031
0.75992
0.73069
050663
045235
0.40388
0.36061
032197
037043
031393
026604
022546
0.19106
0.39964
0.54027
0.50025
0.46319
0.42888
0.39711
0.36770
0.34046
031524
0.35056
0.4240
0.38554
0.30503
0.26295
0.83676
0.76642
0.82035
0.74409
0.80426
0.72242
0.78849
0.70138
0.77303 0.68095
0.70259
0.67556
0.64958
0.62460
0.64461
061391
0.58468
0.55684
0.53032
0.50507
0.48102
0.45811
0.59190
0 55839
030751
026974
023662
020756 0.16846
0.18207
0.15971
10
11
0.07254
0.05580
0.35049 028748
031863 025668
0.22917
0.20462
0.18270
0.16312
0.14564
0.19542
0.52679
0.49697
0.46884
0.44230
0.41727
038753
0.16192
0.13459
0.08590
0.06872
0.05498
0.04398
0.03518
035553
0.13722
0.11216
0.01292
0.03302
0.02540
0.01954
0.01503
12
13
0.60057
0.57748
0.55526
0.53391
0.32618 0.28966
0.26333
0.23939
021763
0.19784
0.17986
0.16351
0.14864
0.13513
0.12205
0.11168
0.10153
0.09230 0.05882
0.08391
0.14523
0.12520
0.10793
0.09304
0.11629
0.09855
0.08352
0.09346
0.07789
0.06491
0.75788 0.66112
0.74301
0.29925
0.27454
025187
023107
021199
14
15
0.64186
0.14010
029189
027027
0.25025
0.72845
0.07078 0.05409 0.02815
0.02252
0.01801
0.01441
0.01153
0.02174 0.00922
0.00738
0.00590
0.00472
042317
0.60502
0.39365
0.37136
0.35034
0.33051
0.31180
0.12209
16
17
0.71416
0.70016
0.68643
0.67297
065978
0.51337
0.49363
0.47464
0.45639
0.43883
042196
0.40573
0.43630
0.41552
0.39573
0.37689
0.05998 04507
0.05083 003756
0.04308 0.03130
0.10780 0.08021
0.09456 0.06914
0.08295 0.05961
0.01156
0.00889
0.00684
0.00526
0.00405
0.00311
0.00239
0.58739
0.29586
027651
0.25842
0.13004
0.11611
0.10367
0.09256 06383
0.08264
0.07379
18
0.57029
023171
0.19449
0.17843
0.16370
19
0.81954
0.81143
O.B0340
021455
003451 002608
0.03094
0.02622
0.02222
0.01883
001596
001352
0.01146
0.00971
0.00823
0.00697
20
21
22
007276 0.05139
0.04430
0.03819
0.55368
0.53755
0644 052109
0.63416 0.50669
0.62172 0.49193
0.47761
0.46369
0.45019
0.35894
0.34185
0.32557
0.31007
0.29530
0.20124
0.26785
0.25509
024295
0.23138
029416
0.27751
0.26180
0.24698
023300
021981
0.20737
0.19563
0.18456
0.17411
024151
0.22571
021095
0.19715
0.18425
0.17220
0.16093
0.19866
0.18394
0.17032
0.15770
0.15018
0 05599
0.01811
0.01509
0.79544
0.13778
23
24
0.04911
0.78757
0.77977
0,77205
0.76440
0.12640
0.11597
0.10639
0.09761
0.03292
0 04308 0.02838
0.03779 02447
003315 0.02109
0.39012
037512
0.06588
0.01258
0.01048
0.00874
0.00728
0.00184
0.14602
0.13520
0.60953
0.59758
0.58586
057437
0.56311
0.55207 0.41199
0.00378
0.00302
0.00242
0.00193
0.00155
0.00124
0.00142
0.00109
0.00064
25
036069
0.05252
0.04689
26
27
28
29
0.75684
0.74934
0.74192
0.34682
0.33348
0.32065
0.30832
0.12519
0.11591
0.10733
0.09938
0.07628
0.06934 0.04187
0.06304
0.02908 0.01818
0 02551
0.01567
0 02237
0.01351
001963
0.01165
0.43708
0.15040
0.14056
0.13137
0.08955
O 08215
0.07537
0.00607
0.00506
0.00421
0.00065
0.00050
0.00038
0.42435
0.03738
30
0.05731
0.03338