Question

CALCULATOR PRINTER VERSION BACK Brief Exercise G-14 x Your answer is incorrect. Try again. Marigold Corp. is about to issue $310,200 of 10-year bonds paying an 10% interest rate, with interest payable semiannually. The discount rate for such securities is 12%. Click here to view the factor table 1 Click here to view the factor table 2 Click here to view the factor table Click here to view the factor table 4. How much can Marigold expect to receive for the sale of these bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 5.2541 Round answer to O decimal places, e.g. 2,525.) Marigold can expect to receive 214897

Answer 1

Answer Page No ① Macarigold can expect the creative for the sake of the boods Interest rate = 10% Year to maturity = 10 years Semi annually, n = tox3 = 20 years face value of the bords = $310,000 Payment = pot = 310,200 X 10 % = $15510 Yiella discount sete = la.) con la = 6% Prezent value of the bonds - (8510x'=6*6*) ) + :.: (310,200 x (14 67)) = (15510 X 11:46992) + (310200 40-3119 3 147898.4592 + 96720:36 = $ 274618.8 310,20

Page No ③ en $ 274619 ww 'Marigold can expect to vreccive - $274619