Ocean Adventures issues bonds due in 10 years with a stated interest rate of 8% and...

Question

Question

Ocean Adventures issues bonds due in 10 years with a stated interest rate of 8% and a face value of $450,000. Interest paymen

Answer 1

Answer #1

Issue price of bond is the present value of future cash flows which is calculated as follows:

Price of bonds	=-pv(rate,nper,pmt,fv)	Where,
	= $ 4,81,978	rate			=	3.50%
		nper			=	20
		pmt	=	450000*4%	=	$ 18,000
		fv			=	$ 4,50,000

Answer 2

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