1.
Price of the bonds | $ 6,06,23,693.00 |
Working:
Table Value Based on | ||
n= | 8 | (4 Year X 2) |
i= | 4.00% | (8% / 2) |
Cash Flow | Amount | Present Value |
Interest - $65,000,000 X 6% X 6/12 | $ 19,50,000.00 | $ 1,31,28,843.00 |
=1950000*6.73274 | ||
Principal | $ 6,50,00,000.00 | $ 4,74,94,850.00 |
=65000000*0.73069 | ||
Issue Price of Bonds | $ 6,06,23,693.00 |
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