On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $440 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Table values are based on: Required: Determine the price of the bonds on September 30, 2018. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) n= Cash Flow Interest Principal Price of bonds Amount 20 8% $ Help Present Value Save & E 364,500,084
On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $440 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Table values are based on: Required: Determine the price of the bonds on September 30, 2018. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) n= Cash Flow Interest Principal Price of bonds Amount 20 8% $ Help Present Value Save & E 364,500,084
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
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Transcribed Image Text:On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $440 million. The bonds
mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on
March 31 and September 30. ((EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
Table values are based on:
Required:
Determine the price of the bonds on September 30, 2018. (Enter your answers in whole dollars. Round your final answers to nearest
whole dollar amount.)
n=
Cash Flow
Interest
Principal
Price of bonds
Amount
20
8%
Help
Present Value
Save & Exit
$ 364,500,084
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