1 answer

Nmen Use the following tables to calculate the present value of a $342,000-5%, 6-year bond that...

Question:

nmen Use the following tables to calculate the present value of a $342,000-5%, 6-year bond that pays $17,100 interest annually, if the market rate of interest is 69, Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1 Periods 5% 6% 7% 10%: Periods 5% 6% 7% 10% 90909 2 1.85941 1.83339 1.80802 1.73554 3 86384 83962 .81630 751313 2.72325 2.67301 2.62432 2.48685 3.54595 3.46511 3.38721 3.16987 5 4.32948 4.21236 4.10020 3.79079 6 .7 6 5.07569 4.91732 4.76654 4.35526 7 71068 66506 .62275 51316 7 5.78637 5.58238 5.38929 4.86842 8 .67684 62741 .58201 466518 6.46321 6.20979 5.971305.33493 9 ·64461.59190.54393.42410| 9 7.10782 6.80169 6.51523 5.75902 10 .61391 .55839 .50835 3855410 7.72173 7.36009 7.02358 6.14457 .95238 94340 .93458 90909 2 90703 89000 .87344 826452 95238 94340 93458 4 82270 .79209 76290 .68301 7835374726 71299 62092 74622 70496 66634 56447 Previous e?? 7/16/2018
nmen Use the following tables to calculate the present value of a $342,000-5%, 6-year bond that pays $17,100 interest annually, if the market rate of interest is 69, Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1 Periods 5% 6% 7% 10%: Periods 5% 6% 7% 10% 90909 2 1.85941 1.83339 1.80802 1.73554 3 86384 83962 .81630 751313 2.72325 2.67301 2.62432 2.48685 3.54595 3.46511 3.38721 3.16987 5 4.32948 4.21236 4.10020 3.79079 6 .7 6 5.07569 4.91732 4.76654 4.35526 7 71068 66506 .62275 51316 7 5.78637 5.58238 5.38929 4.86842 8 .67684 62741 .58201 466518 6.46321 6.20979 5.971305.33493 9 ·64461.59190.54393.42410| 9 7.10782 6.80169 6.51523 5.75902 10 .61391 .55839 .50835 3855410 7.72173 7.36009 7.02358 6.14457 .95238 94340 .93458 90909 2 90703 89000 .87344 826452 95238 94340 93458 4 82270 .79209 76290 .68301 7835374726 71299 62092 74622 70496 66634 56447 Previous e?? 7/16/2018

Answers

Present value of the bond = $17,100 (PVIFA 6%,6) + $342,000 (PVIF 6%,6th year)

   = $17,100(4.91732 ) + $342,000 (0.70496)

= $84,086.172 + $241,096.32

= $325,182.492

Therefore the present value of the bond $342,000 is $325,182.49

.

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