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.):

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%

• 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 nearest whole dollar.)

	Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds

Maturity 10 years, interest paid semiannually, stated rate 8%, effective (market) rate 10%. (Round your answers to the nearest whole dollar.)

	Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds

Maturity 5 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. (Round your answers to the nearest whole dollar.)

	Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds

Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. (Round your answers to the nearest whole dollar.)

	Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds

Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%. (Round your answers to the nearest whole dollar.)

	Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds

Answer 1