Answer :
Price of Bond = Present Value of Interest + Present Value of Principal
= (1350 * PVIFA 3.5%, 20 years ) + (45000 * PVIF3.5%, 20 years )
= 19186.74 + 22612.5
= 41800
Ultimate Butter Popcorn issues 6%, 10-year bonds with a face amount of $45,000. The market interest...
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Ultimate Butter Popcorn issues 6%, 15-year bonds with a face amount of $53,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually. At what price will the bonds issue?
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A company issued 6%, 15-year bonds with a face amount of $67 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Table values are based...
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