Chapter $9$ Homework

Submit your answers in CANVAS before it is due

USE THE PV Factor Tables $($located in Canvas Module "Files"$)$ or the TI BAIl Plus Financial Calculator to answer the

following questions relating to the time value of money.

Use the following to answer questions $1-3($Round answers to the nearest dollar$)$

The company issues $9\mathrm{.}0\%,10-$year bonds with a total face amount of $$500,000.$ The market interest rate for bonds of

similar risk and maturity is $9\mathrm{.}2\%.$ Interest is paid semi$-$annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY

COMPLETE THE PROBLEM SET.

$

Determine the semi$-$annual interest payment for this bond

$

$($rounded to nearest dollar$).$ What is the present value of these interest payments?

$

$($rounded to nearest dollar$).$ What is the issue price of the bond?