Ayayai Inc. issues $2,170,400 of 8% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 9%. Click here to view factor tables What amount will Ayayai receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
We need to calculate the given amount by taking market interest rate of 9% as pv factor for 12 years.
So the pv factor for $1 = 0.35553
Pv factor of ordinary annuity = 7.16073
Amount | PV factor 9% | Present value [ amount *pv factor] | ||
Interest | 173,632 | 7.16073 | 173,632 * 7.16073 = 1,243,332 | |
Principal | 2,170,400 | 0.35553 | 2,170,400 * 0.35553 = 771,642 | |
Total (interest + principal) = | 2,014,974 [ 1243332 + 771642] | |||
Amount received from sale of bonds = total interest and principal = 2,014,974 | ||||
Thus, he will get $2,014,974 when the bonds are issued. |
Ayayai Inc. issues $2,170,400 of 8% bonds due in 12 years with interest payable at year-end....
Brief Exercise 6-15 Ayayai Inc. issues $2,011,300 of 10% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%. Click here to view factor tables What amount will Ayayai receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Amount received by Ayayai when bonds were issued
Skysong Inc. issues $2,084,300 of 10% bonds due in 13 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%. Click here to view factor tables What amount will Skysong receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
Narin Inc. issues $1,700,000 of 7% bonds due in 15 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%. Click here to view factor tables What amount will Marin receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to decimal places, e.g. 458,581.) Amount received by Marin when bonds were issued $
Grouper Inc. issues $1,900,000 of 7% bonds due in 11 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 9%. Click here to view factor tables What amount will Grouper receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.) Amount received by Grouper when bonds were issued &
Sunland Inc. issues $3,500,000 of 7% bonds due in 15 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12%. Click here to view factor tables What amount will Sunland receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Amount received by Sunland when bonds were issued $enter a dollar amount rounded to 0 decimal places
Brief Exercise 6-15 Vaughn Inc. issues $2,085,900 of 9% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. Click here to view factor tables What amount will Vaughn receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Amount received by Vaughn when bonds were issued
Carla Inc. issues $2,300,000 of 7% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. Click here to view factor tables What amount will Carla receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 0 decimal places, e.g. 458,581.) Amount received by Carla when bonds were issued $enter a dollar amount...
Kingbird, Inc. issues $6,900,000 of 4% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 6%. Click here to view the factor table. What amount will Kingbird receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 0 decimal places, e.g. 458,581.) Amount received by Kingbird when bonds were issued $
Sandhill Inc. Issues $2,800,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12% Click here to view factor tables What amount will Sandhill receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to decimal places, s. 458,581.) Amount received by Sandhill when bonds were issued $
Sandhill Inc, Issues $2,800,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12% Click here to view factor tables What amount will Sandhill receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to decimal places, eg. 458,581.) Amount received by Sandhill when bonds were issued 5