Click here to view factor tables.$52.710 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%. (Round factor values to 5 decimal places, e.g.1.25124 and final answer to O decimal places, eg. 458,581.)Present value $160098.68 Sage Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of anew plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors hasdecided to raise funds for the new plant by issuing $3,128,500 of 12% term corporate bonds on March 1, 2025, due on March 1, 2040.with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instrumentsis 8%.Click here to view factor tables.As the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal places, eg. 1.25124 and finalanswer to O decimal places, e.g. 458,581)Selling price of the bonds $

Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

Answered: Sage Inc. manufactures cycling…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7
Sandhill Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,258,500 of 8% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 6%

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