A | B | |
1 | 18 | |
2 | Face value | 190000 |
3 | Stated interest rate | 8% |
4 | Semiannual interest paid | 7600 |
5 | Number of semiannual periods to maturity | 20 |
6 | Semiannual market rate | 0.035 |
7 | ||
8 | Present value of interest paid | $108,014 |
9 | Present value of face value to be paid at maturity | $95,488 |
10 | Issue price of the bonds | $203,502 |
11 | ||
12 | Therefore, the correct answer is $203,502. | |
13 | ||
14 | 19 | |
15 | Face value | 180000 |
16 | Stated interest rate | 11% |
17 | Semiannual interest paid | 9900 |
18 | Number of semiannual periods to maturity | 30 |
19 | Semiannual market rate | 0.06 |
20 | ||
21 | Present value of interest paid | $136,272 |
22 | Present value of face value to be paid at maturity | $31,340 |
23 | Issue price of the bonds | $167,612 |
24 | ||
25 | Therefore, the correct answer is $167,612. | |
26 | ||
27 | 20 | |
28 | Face value | 150000 |
29 | Stated interest rate | 10% |
30 | Semiannual interest paid | 7500 |
31 | Number of semiannual periods to maturity | 20 |
32 | Semiannual market rate | 0.06 |
33 | ||
34 | Present value of interest paid | $86,024 |
35 | Present value of face value to be paid at maturity | $46,771 |
36 | Issue price of the bonds | $132,795 |
37 | ||
38 | The answer is closest to $132,794. | |
39 | Therefore, the correct answer is $132,794. |
Above figures have been calculated in Excel in the following manner:
18 | |
Face value | 190000 |
Stated interest rate | 0.08 |
Semiannual interest paid | =B2*B3*(1/2) |
Number of semiannual periods to maturity | =10*2 |
Semiannual market rate | =7%/2 |
Present value of interest paid | =PV(B6,B5,-B4,0,0) |
Present value of face value to be paid at maturity | =PV(B6,B5,0,-B2,0) |
Issue price of the bonds | =B8+B9 |
Therefore, the correct answer is $203,502. | |
19 | |
Face value | 180000 |
Stated interest rate | 0.11 |
Semiannual interest paid | =B15*B16*(1/2) |
Number of semiannual periods to maturity | =15*2 |
Semiannual market rate | =12%/2 |
Present value of interest paid | =PV(B19,B18,-B17,0,0) |
Present value of face value to be paid at maturity | =PV(B19,B18,0,-B15,0) |
Issue price of the bonds | =B21+B22 |
Therefore, the correct answer is $167,612. | |
20 | |
Face value | 150000 |
Stated interest rate | 0.1 |
Semiannual interest paid | =B28*B29*(1/2) |
Number of semiannual periods to maturity | =10*2 |
Semiannual market rate | =12%/2 |
Present value of interest paid | =PV(B32,B31,-B30,0,0) |
Present value of face value to be paid at maturity | =PV(B32,B31,0,-B28,0) |
Issue price of the bonds | =B34+B35 |
The answer is closest to $132,794. | |
Therefore, the correct answer is $132,794. |
18. Sand Explorers issues bonds due in 10 years with a stated interest rate of 8%...
Sand Explorers issues bonds due in 10 years with a stated interest rate of 9% and a face value of $160,000. Interest payments are made sem annually. The market rate for this type of bond is 8%. Using present value tables, calculate the issue price of the bonds. V of $1. PV of St. EVA of 51. PVA of $1. EVAD of 51 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $195,706. $170,872. ОО $160,000....
Mind Explorers issues bonds with a stated interest rate of 8%, face value of $180,000, and due in 10 years. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Multiple Choice O 892792 5467162 o O S146,426...
Sand Explorers issues bonds due in 10 years with a stated interest rate of 7% and a face value of $220,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $220,000. $236,367. $179,520. $273,960.
VSE Air Destinations issues bonds due in 12 years with a stated interest rate of 11% and a face value of $400,000. Interest payments are made semi- annually. The market rate for this type of bond is 12%. Using present value tables, calculate the issue price of the bonds. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Help - Multiple Choice o...
20- Sand Explorers issues bonds due in 10 years with a stated interest rate of 7% and a face value of $180,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) $146,880. $193,390. $180,000. $224,149.
Sand Explorers issues bonds due in 12 years with a stated interest rate of 9% and a face value of $280,000. Interest payments are made semi-annually. The market rate for this type of bond is 8%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $206,146. $301,346. $351,129. $280,000.
Sand Explorers issues bonds due in 10 years with a stated interest rate of 8% and a face value of $150,000. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $118,394. $160,660. $185,076. $150,000.
Sand Explorers issues bonds due in 15 years with a stated interest rate of 9% and a face value of $320,000. Interest payments are made semi-annually. The market rate for this type of bond is 8%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $414,082. $320,000. O o oo...
Roman Destinations issues bonds due in 10 years with a stated interest rate of 5% and a face value of $520,000 Interest payments are made semiannually. The market rato for this type of bond is 4%. Using present value tables, calculate the issue price of the bonds. (EV or $1. PV of $1. EVA of $1. PVA OL $1. EVAD ol Stond PVAD of $1 (Use appropriate factor(s) from the tables provided.) Multiple Choice $562513 C) $354299 Oo oo 5481,319....
Sand Explorers issues bonds due in 10 years with a stated interest rate of 7% and a face value of $220,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)