Use the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays $18,900 interest annually, if the market rate of interest is 7%. Round to the nearest dollar.Present Value of $1Present Value of Annuity of $1Periods5 %6 %7 %10 %Periods5 %6 %7 %10 %1..95238.94340.93458.90909 :1.95238.94340.93458.909092.90703.89000.87344.82645 :21.859411.833391.808021.73554.86384.83962.81630.7513132.723252.673012.624322.486854.82270.79209.76290.6830143.545953.465113.387213.169875.78353.7472671299.6209254.329484.212364.100203.79079.74622.70496.66634.564475.075694.917324.766544.355267.71068.66506.62275.513165.786375.582385.389294.868428.67684.62741.58201.466518.6.463216.209795.971305.334939..64461.59190.54393424107.107826.801696.515235.7590210,61391.55839.50835.38554107.721737.360097.023586.14457

The present value of the bond is the future inflows from bonds discounted at the market rate of…

se the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays $18,900 interest annually, if the market rate of interest is 7%. Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1

se the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays $18,900 interest annually, if the market rate of interest is 7%. Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1

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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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

Use the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays $18,900 interest annually, if the market rate of interest is 7%. Round to the nearest dollar.
Present Value of $1
Present Value of Annuity of $1
Periods
5 %
6 %
7 %
10 %
Periods
5 %
6 %
7 %
10 %
1.
.95238
.94340
.93458
.90909 :
1
.95238
.94340
.93458
.90909
2
.90703
.89000
.87344
.82645 :
2
1.85941
1.83339
1.80802
1.73554
.86384
.83962
.81630
.75131
3
2.72325
2.67301
2.62432
2.48685
4
.82270
.79209
.76290
.68301
4
3.54595
3.46511
3.38721
3.16987
5
.78353
.74726
71299
.62092
5
4.32948
4.21236
4.10020
3.79079
.74622
.70496
.66634
.56447
5.07569
4.91732
4.76654
4.35526
7
.71068
.66506
.62275
.51316
5.78637
5.58238
5.38929
4.86842
8
.67684
.62741
.58201
.46651
8.
6.46321
6.20979
5.97130
5.33493
9.
.64461
.59190
.54393
42410
7.10782
6.80169
6.51523
5.75902
10
,61391
.55839
.50835
.38554
10
7.72173
7.36009
7.02358
6.14457

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