1. Air Destinations issues bonds due in 14 years with a stated interest rate of 9% and a face value of $300,000. Interest payments are made semi-annually. The market rate for this type of bond is 10%. Using present value tables, calculate the issue price of the bonds. (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.)

277652

322348

178449

300000

2. Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $500 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $432,050,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022?

375378000

434332000

375408240

375362880