On January 1, 2014, PVP Co. issued 6 % bonds with a face value of $400,000 when the market interest rate was 8 %. The bonds are due in 10 years, and interest is payable every June 30 and December 31. Use the following present value and present value annuity tables to select applicable factors.

Show computations to calculate the selling price of the bond (round your final answer to the nearest dollar).

Transcribed Image Text:

Present value of an ordinary annuity of $1 Present value of $1 At 3% 10 periods=8.5302 At 4% 20 periods=13.5903 At 3% 10 periods=0.7441 At 4% 20 periods=0.4564 At 6% 10 periods=7.3601 At 8% 10 periods=6.7101 At 6% 10 periods=0.5584 At 8% 10 periods=0.4632 Present value of an ordinary annuity of $1 Present value of $1 At 3% 10 periods=8.5302 At 4% 20 periods=13.5903 At 3% 10 periods=0.7441 At 4% 20 periods=0.4564 At 6% 10 periods=7.3601 At 8% 10 periods=6.7101 At 6% 10 periods=0.5584 At 8% 10 periods=0.4632

Answer rating: 100% (QA)

Present value of 1 PV of 1 FV PV of 1 f... View the full answer