Solution:
Cash flow | Amount | Present value |
Interest | *$2,340,000×16.28889** | $38,116,002 |
Principal | $52,000,000×0.26700*** | $13,884,000 |
Price of bonds | $52,00,002 |
*4.5%×52,000,000
**Present value of an ordinary annuity of $1: n=30 i=4.5% (PVA of$1)
*** Present value of $1: n=30, i=4.5% (PV of $1)
_____×_____
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