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Determine the bond issue proceeds for each of the following bonds payable. All bonds are issued...

Determine the bond issue proceeds for each of the following bonds payable. All bonds are issued on January​ 1, 2019 2019.

a. Beta Beta Corporation issued bonds in the amount of $1,210,000 that will be paid in 9 9 years. Interest of $36,300 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June​ 30, 2019 2019. If the market rate of interest is 12​%, what is the amount of the bond issue​ proceeds? ​(Use the present value and future value​ tables, a financial​ calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula​ method, use factor amounts rounded to five decimal​ places, X.XXXXX. Round your final answer to the nearest​ cent, $X.XX.)

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Answer #1

Bond issue proceeds = Present value of interest at 6%, 18 years + Present value of maturity amount at 6%, 18 years

= 36300*10.828 + 1210000*0.3503

= $816920

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