Spiller Corporation plans to issue 12%, 8-year, $470,000 par value bonds payable that pay interest semiannually...

 

Transcribed Image Text:

Spiller Corporation plans to issue 12%, 8-year, $470,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated January 1 of the current year and are issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole dollar. If the market rate of interest for the bonds is 10% on the date of issue, what will be the total cash proceeds from the bond issue? ga Table Values are Based on: Cash Flow Present (maturity) value Interest (annuity) Total cash proceeds wwwwwwwwwwww n = j= 16 5% Table Value 0.4581 $ 10.8378 $ Amount 470,000 $ 31,333 Present Value 215,307 Spiller Corporation plans to issue 12%, 8-year, $470,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated January 1 of the current year and are issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole dollar. If the market rate of interest for the bonds is 10% on the date of issue, what will be the total cash proceeds from the bond issue? ga Table Values are Based on: Cash Flow Present (maturity) value Interest (annuity) Total cash proceeds wwwwwwwwwwww n = j= 16 5% Table Value 0.4581 $ 10.8378 $ Amount 470,000 $ 31,333 Present Value 215,307

Answer rating: 100% (QA)

To calculate the total cash proceeds from the bond issue we need to calculate the present value of b... View the full answer