On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face...

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On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $340 million. The bonds

TABLE 2 Present Value of $1 $1 PV (1+i) ni 1.0% 1 0.99010 2 0.98030 3 0.97059 4 0.96098 5 0.95147 1.5% 0.98522 0.97066 0.956

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Answer 1

Answer #1

Table values are based on:
n=	40
i=	5%
Cash flow	Amount	Present Value
Interest	13600000	233363624	=13600000*17.15909
Principal	340000000	48297000	=340000000*0.14205
Price of Bonds		281660624


(1-(1.05)^-40)/0.05 = 17.15909

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Answer 2

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