Question: Rams Company issued 7 % bonds, dated January 1 , with a face amount of $ 2 1 0 , 0 0 0 on January

 Rams Company issued 7% bonds, dated January 1, with a face

Rams Company issued 7% bonds, dated January 1, with a face amount of $210,000 on January 1,2024. The bonds mature in 2033(10 years). For bonds of similar risk and maturity the market yield is 6%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds on January 1,2024? Some relevant and irrelevant present value factors:
PV of annuity due of $1:n=20;i=3% is 15.32380
PV of ordinary annuity of $1:n=20;i=3% is 14.87747
?****PV of $1:n=20;i=3% is 0.55368
amount of $210,000 on January 1,2024. The bonds mature in 2033(10 years).

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