BUSA 101
CHAPTER 13: ANSWER TO “EXTRA PRACTICE”
ISSUANCE OF A BOND
SCHMIDT
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1. |
PV of Principal: |
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10.000 X .55840= |
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5584 |
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(Reg. PV, I = 6%, n=10) |
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PV of Interest |
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550 X 7.36009= |
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4048 |
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(Annuity PV, i =6% , n=10) |
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PV of Bond: |
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9,632 |
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PV of Principal: |
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50.000 X .36510= |
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18.255 |
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(Reg. PV, i = 6.5%, n=16) |
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PV of Interest |
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3.500 X 9.76776= |
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34,187 |
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(Annuity PV, i= 6.5% n=16) |
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52,442 |