Homework Answers
| Particulars | Amount ($) |
| Interest | $ 3 Mn. Half yearly |
| Present Value Annuity Factor of $3 Mn for 40 Half Yearly payments (PVAF 40, 4%) | 19.79 |
| Present Value of Annuity (A) | 59.37 |
| Redemption of Face Value | $200 Mn. |
| Present Value InterestFactor of $200 Mn after 20 years @ 4% | 0.208 |
| Present Value of redemption amount (B) | $41.60Mn |
| Total value of Bond in B/S(A+B) | $100.97Mn |
| Particulars | Amount |
| Lease amount | $50,000.00 |
| Present Value Annuity Factor of $50000 for 9 Yearly payments (PVAF 9, 8%)+ Present value of $50000 | 7.24 |
| Present Value of Lease (A) to be recognized in Balance Sheet | $3,62,000.00 |
| Particulars | Amount |
| Lease amount | $60,000.00 |
| Present Value Annuity Factor of $60000 for 6 Yearly payments from year 5 (PVAF 9, 8%)+ Present value of $60000 of year 4 | 5.62 |
| Present Value at Beginning of Year 4 | $3,37,200.00 |
| Present Value of Lease (A) to be recognized in Balance Sheet | $2,67,680.23 |
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