On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $440 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds on September 30, 2021. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) Table values are based on: n = Cash Flow Interest Principal ¡= Price of bonds Amount 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
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On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $440 million. The bonds
mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on
March 31 and September 30. ((FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
Required:
Determine the price of the bonds on September 30, 2021. (Enter your answers in whole dollars. Round your final answers to nearest
whole dollar amount.)
Table values are based on:
n =
i =
Cash Flow
Interest
Principal
Price of bonds
Amount
Present Value
Transcribed Image Text:On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $440 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds on September 30, 2021. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) Table values are based on: n = i = Cash Flow Interest Principal Price of bonds Amount Present Value
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