Homework Answers
| Answer | |||
| Table values are based on: | |||
| Face Amount | $ 111,000,000 | ||
| Interest Payment | $111,000,000*5% =$5,550,000 | ||
| Market Interest rate per period | 6.00% | ||
| Cash Flow | Table Value(PV of 6% for 30 period) | Amount | Present Value |
| PV of Interest | 13.7648 | $ 5,550,000 | $ 76,394,640 |
| PV of Principal | 0.17411 | $111,000,000 | $ 19,326,210 |
| PV of Bonds Payable(Issue Price) | $ 95,720,850 | ||
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