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TABLE 6.4 FACTORS FOR CALCULATING THE PRESENT VALUE OF $1 Discount Rate No. of Periods 2% 0.980 0.961 0.942 0.924 0.906 4% 0.TABLE 6.5 FACTORS FOR CALCULATING THE PRESENT VALUE OF AN ANNUITY OF $1 Discount Rate No. of Periods 2% 4% 6% 8% 10% 12% 14%Required information [The following information applies to the questions displayed below.) On January 1, 2019, Drennen Inc. i

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Answer #1
The issue price of the bond is the sum of the following:
a] the PV of the maturity value of $2,600,000 repayable
at EOY 6, and
b] the PV of the 12semi-annual interest payments of
$234,000 [2600000*9%] each, which, are in the form of
an annuity.
The discount rate is the market interest rate of 8%
half yearly.
Hence, the proceeds = 2600000*0.3971+234000*7.5361 = $    27,95,907
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