Complete the below table to calculate the price of a $1.5 million bond issue under each of
Question:
Complete the below table to calculate the price of a $1.5 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.Enter your answers in whole dollars.):
1. Maturity 15 years, interest paid annually, stated rate 10%, market rate 12%.
Table values are based on:
| n= | | |
| i= | | |
| Cash Flow | Amount | Present Value |
| Interest | | |
| Principal | | |
| Price of bonds | | |
2. Maturity 6 years, interest paid semiannually, stated rate 14%, market rate 16%.
Table values are based on:
| n= | | |
| i= | | |
| Cash Flow | Amount | Present Value |
| Interest | | |
| Principal | | |
| Price of Bonds | | |
3. Maturity 5 years, interest paid semiannually, stated rate 16%, market rate 14%.
Table values are based on:
| n= | | |
| i= | | |
| Cash Flow | Amount | Present Value |
| Interest | | |
| Principal | | |
| Price of bonds | | |
4. Maturity 20 years, interest paid semiannually, stated rate 14%, market rate 16%.
Table values are based on:
| n= | | |
| i= | | |
| Cash Flow | Amount | Present Value |
| Interest | | |
| Principal | | |
| Price of Bonds | | |
5. Maturity 20 years, interest paid semiannually, stated rate 14%, market rate 14%.
Table values are based on:
| n= | | |
| i= | | |
| Cash Flow | Amount | Present Value |
| Interest | | |
| Principal | | |
| Price of bonds | | |
Expert Answer:
1 Maturity 15 years interest paid annually stated rate 10 market rate 12 Table values are based on n ... View the full answer
