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A company issued 9%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturit
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Answer #1
The PV of principal amount is correct but is written in Principal part instead of Interest part.
Table values are based on:
n= 40 4500000
i= 3.0%
Cash Flow Table Value Amount Present Value
PV of Interest 23.11477 $45,00,000 $10,40,16,465
PV of Principal 0.306056 $10,00,00,000 $3,06,05,600
PV of Notes Payable $13,46,22,065
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