Question

Complete the below table to calculate the price of a $1.2 million bond issue under each of the following independent assumptions (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.): points 1. Maturity 14 years, interest paid annually, stated rate 8%, effective market) rate 10% 2. Maturity 10 years, interest paid semiannually, stated rate 8%, effective (market) rate 10% 3. Maturity 5 years, interest paid semiannually, stated rate 10%, effective (market) rate 8% 4. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 8% 5. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 10% eBook Hint Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Maturity 14 years, interest paid annually, stated rate 8%, effective (market) rate 10%. (Round your answers to the neare: whole dollar) Table values are based on: Present Value Cash Flow Interest Principal 100% Amount 120,000 1.200.000 $ $

Answer 1

1.

Table Value are based on
n=	14
i=	10%
Cash flow	Amount	Present Value
Interest	96,000.00	707,203
Principal	1,200,000.00	315,996
Price of Bonds		1,023,199

2.

Table Value are based on
n=	20
i=	5%
Cash flow	Amount	Present Value
Interest	48000	598,186
Principal	1200000	452,268
Price of Bonds		1,050,454

3

Table Value are based on
n=	10
i=	4%
Cash flow	Amount	Present Value
Interest	60000	486,654
Principal	1200000	810,672
Price of Bonds		1,297,326

4.

Table Value are based on
n=	20
i=	4%
Cash flow	Amount	Present Value
Interest	60000	815,582
Principal	1200000	547,668
Price of Bonds		1,363,250

5.

Table Value are based on
n=	20
i=	5%
Cash flow	Amount	Present Value
Interest	60000	747,732
Principal	1200000	452,268
Price of Bonds		1,200,000