Question: USING EXCEL PV FORMULA Problem: On January 1, 2016, the Auto-Stop Corporation issued bonds in the amount of $10,000 that will be paid in three

USING EXCEL PV FORMULA Problem: On January 1, 2016, the Auto-Stop Corporation issued bonds in the amount of $10,000 that will be paid in three years. Interest of $400 is payable semiannually each January 1 and July 1 with the first interest payment at the end of the period, on July 1 of the current year. Draw a time line of the bonds cash outflows. If the market rate of interest is 10%, what is the amount of the bond issue proceeds (cash received) when Auto-Stop Corporation issued the bonds?

(1) PV of Single Sum

(2) PV of Ordinary Annuity

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