Question

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Kieso, Intermediate Accounting, l6e Heln BACK Exercise 6-13 3 Your answer is incorrect. Try agin Buffalo Inc, manufactures careful evaluation of the request, tbe board o director, has dec ded to ra se payable each March 1 and September 1, with the first initerest cyding equipment. Recently, the vice president of operations of the company has requested o ruct eran wplne tom et the inc nasro de and het e due on March 1, 2032, with interest rds tr the- u ma ani krs. Ater。 ㄧ s payment on September 1st, 2017. At the time of issuance, the market interest rate for simalae financial instruments is 8% company, determine the selling price of the bonds. (Roumd factor vales to s dlocimal places e.g. 125124 and final answer to O decimal placesy e.g: 458, 81) Seling price of the bonds 3,16-8,90 Click if you would like to Show Work for this questioni 0eShom Work Oy accessing this Question Assestance, you wa leam while you eam paies based on the ︼ potential polo set by your mstroak Question Attempts:1 of 3 used s*ㅷ roRLATER Earn Maximum Points available only if you answer this question correctly n three attempts or less. verson 4241

Answer 1

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Maturity Value of Bonds					3054300
Semi Annual cash interest (3054300*12%*6/12)					183258
PVf at 4% for 30th period					0.308319
Annuity PVF at 4% for 30 periods					17.29203
Present Value of Maturity value of bonds					941698.7
Present value of Interest payments					3168903
Issue price of bonds					4110602
Seling price of bonds: $ 4110,602