21- Seaside issues a bond that has a stated interest rate of 8%, face amount of $50,000, and is due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 10%. What is the issue price of the bond? (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.)
Multiple Choice
$45,569.
$82,802.
$77,842.
$50,000.
Bond characterstics | Amount | |||||
Principal | 50,000 | |||||
interest | 2,000 | |||||
Market interest rate | 5% | |||||
periods to maturity | 12 | |||||
issue price | 45,569 | Answer | ||||
Calculation of bond issue price | ||||||
Where | ||||||
i= | 5.00% | |||||
t= | 12 | |||||
principal | * | PV of $1 at 5% for 12 yrs = | ||||
50,000 | * | 0.55684 | = | 27842 | ||
interest | * | PV of ordinary annuity at 5%= | ||||
2000 | * | 8.86325 | = | 17727 | ||
bond issue price | 45569 | |||||
21- Seaside issues a bond that has a stated interest rate of 8%, face amount of...
Seaside issues a bond that has a stated interest rate of 10%, face amount of $50,000, and is due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 12%. What is the issue price of the bond? (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.) Multiple Choice $83,920. $46,320. $53,605. $50,000.
Seaside issues a bond that has a stated interest rate of 7%, face amount of $40,000, and is due in 8 years. Interest payments are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond? (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.) Multiple Choice $65,276. $37,669. $61,356. $40,000.
22 Seaside issues a bond that has a stated interest rate of 9%, face amount of $40,000, and is due in 8 years. Interest payments are made semi-annually. The market rate for this type of bond is 12%. What is the issue price of the bond? (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.) Multiple Choice $55,746. $33,937. $40,000. $60,786.
Seaside issues a bond that has a stated interest rate of 12%, face amount of $50,000, and is due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 14%. What is the issue price of the bond? (EV of $1, PV of $1, EVA of $1, PVA of $1, EVAD of S1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Ο Ο Ο $75,418. Ο $82,618. Ο
Mind Explorers issues bonds with a stated interest rate of 8%, face value of $180,000, and due in 10 years. Interest payments are made semi- annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds. (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.) Multiple Choice $192,792. $180,000 oooo $146,426. $167,769.
20- Mind Explorers issues bonds with a stated interest rate of 8%, face value of $190,000, and due in 10 years. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds. (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.) Multiple Choice $190,000. $154,560. $203,502. $177,090.
Sand Explorers issues bonds due in 10 years with a stated interest rate of 8% and a face value of $150,000. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds. (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.) Multiple Choice $118,394. $160,660. $185,076. $150,000.
Sand Explorers issues bonds due in 10 years with a stated interest rate of 6% and a face value of $210,000. Interest payments are made semi-annually. The market rate for this type of bond is 5%. Using present value tables, calculate the issue price of the bonds. (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.) Multiple Choice $177,569. $226,369. Loooo $264,081. $210,000.
19- Roman Destinations issues bonds due in 10 years with a stated interest rate of 8% and a face value of $410,000. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds. (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.) Multiple Choice $410,000. $224,831. $439,137. $383,330.
Roman Destinations issues bonds due in 10 years with a stated interest rate of 7% and a face value of $590,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using present value tables, calculate the issue price of the bonds. (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.) Multiple Choice $633,891. $350,107. $549,908. $590,000.