Spiller Corporation plans to issue 8%, 7-year, $480,000 par value bonds payable that pay interest semiannually onJune 30 and December 31. The bonds are dated January 1 of the current year and are issued on that date. (PV of$1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Tablevalue" to 4 decimal places and final answers to nearest whole dollar.)If the market rate of interest for the bonds is 6% on the date of issue, what will be the total cash proceeds fromthe bond issue?Table Values are Based on:Cash FlowPresent (maturity) valueInterest (annuity)Total cash proceedsn =i =Table Value14$Amount480,000Present Value

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Spiller Corporation plans to issue 8%, 7-year, $480, 21

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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Question

Spiller Corporation plans to issue 8%, 7-year, $480,000 par value bonds payable that pay interest semiannually on
June 30 and December 31. The bonds are dated January 1 of the current year and are issued on that date. (PV of
$1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table
value" to 4 decimal places and final answers to nearest whole dollar.)
If the market rate of interest for the bonds is 6% on the date of issue, what will be the total cash proceeds from
the bond issue?
Table Values are Based on:
Cash Flow
Present (maturity) value
Interest (annuity)
Total cash proceeds
n =
i =
Table Value
14
$
Amount
480,000
Present Value

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