1 answer

A company issued 6%, 15-year bonds with a face amount of $55 million. The market yield...

Question:

A company issued 6%, 15-year bonds with a face amount of $55 million. The market yield for bonds of similar risk and maturity
A company issued 6%, 15-year bonds with a face amount of $55 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (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. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Table values are based on: Amount Present Value Cash Flow Interest Principal Price of bonds

Answers

Table values are based on:
n= 30
i= 3%
Cash flow Amount Present Value
Interest      1,650,000.00           32,340,660.00
Principal    55,000,000.00           22,659,450.00
Price of Bonds           55,000,110.00
.

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