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ACCT 382 - Week 6 - Chapter 6 Homework - Question 9

ACCT 382 - Week 6 - Chapter 6 Homework - Question 9
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ACCT 382 - Week 6 - Chapter 6 Homework - Question 9

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Question 9

The San Fillipo Corporation issued 8% stated rate bonds with a face amount of $300 million. The bonds mature on September 30, 2033 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. (FV of $1PV of $1FVA of $1,PVA of $1FVAD of $1 and PVAD of $1(Use appropriate factor(s) from the tables provided.)

Required:

Determine the price of the bonds on September 30, 2013. (Enter your answers in whole dollars.)

 

 

 

 

Table values are based on:

n =

40

 

i =

5%

 

Cash Flow

Amount

Present Value

Interest

 

+/-0.001%$205,909,080

Principal

 

+/-0.3%42,615,000

Price of bonds

+/-0.3%