On January 1, 2025, Cullumber Co. issued ten-year bonds with a face value of $5,625,000 and...

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On January 1, 2025, Cullumber Co. issued ten-year bonds with a face value of $5,625,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.38554 Present value of 1 for 10 periods at 12% 0.32197 Present value of 1 for 20 periods at 5% 0.37689 Present value of 1 for 20 periods at 6% 0.31180 Present value of annuity for 10 periods at 10% Present value of annuity for 10 periods at 12% 6.14457 5.65022 Present value of annuity for 20 periods at 5% 12.46221 Present value of annuity for 20 periods at 6% 11.46992 (a) Calculate the issue price of the bonds. (Round final answer to O decimal places, e.g. 25,000.) Issue price of bond $ On January 1, 2025, Cullumber Co. issued ten-year bonds with a face value of $5,625,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.38554 Present value of 1 for 10 periods at 12% 0.32197 Present value of 1 for 20 periods at 5% 0.37689 Present value of 1 for 20 periods at 6% 0.31180 Present value of annuity for 10 periods at 10% Present value of annuity for 10 periods at 12% 6.14457 5.65022 Present value of annuity for 20 periods at 5% 12.46221 Present value of annuity for 20 periods at 6% 11.46992 (a) Calculate the issue price of the bonds. (Round final answer to O decimal places, e.g. 25,000.) Issue price of bond $

Answer rating: 100% (QA)

To calculate the issue price of the bonds we need to find the present value of the bonds future cash ... View the full answer