Question

newconnect.mheducation.com/flow/conne e escohost Bitty Bitlink Manag. Welcome ISCCCDP. M Inbox - nancyde24. My Drive - Google Group Work Part 1 QS 10-5A Computing bond price LO C2 Garcia Company issues 1000%, 15 year bonds with a par value of $470.000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 800%, which implies a selling price of 117 1/4 Confirm that the bonds' selling price is approximately correct Use present value Table B1 and Table B 3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to nearest whole dollar amount.) PSValue 470,000 117 1/4 5470 000 parimat value 0303 323 500 payment 17 2420 Price of Band Difference due to rounding of table values

Answer 1

H15 A В C Е F G 1 Solution:- 2 Х Price Par Value Selling Price 3 $470,000 117-1/4 $551,075 4 5 Cashflow Table Value Present Value 6 $470000 Par (Maturity Value) $23500 Interest Payment $144,901 7 0.3083 $406,362 $551,263 17.2920 of Bond 9 Difference due to rounding off table Values $188 10 11 12. et LO