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= Interest Principal j= Cash Flow Answer is not complete. Price of bonds 5 X 40% Amount Present Value $ 11,200,000 X $ 295,898,276
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= Interest Principal j= Cash Flow Answer is not complete. Price of bonds 5 X 40% Amount Present Value $ 11,200,000 X $ 295,898,276
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 $280 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=
Interest
Principal
j=
Cash Flow
Answer is not complete.
Price of bonds
5 X
40% X
Amount
Present Value
$ 11,200,000
$
EA
295,898,276 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6c0a5f1-b315-4525-b62a-6b1d60cb5114%2Fdc205fa6-fa9b-45cf-8e30-055f35bc0ff0%2Fvsisdna_processed.jpeg&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 $280 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=
Interest
Principal
j=
Cash Flow
Answer is not complete.
Price of bonds
5 X
40% X
Amount
Present Value
$ 11,200,000
$
EA
295,898,276 X
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