1. On January 1, 2020, Vaughn Manufacturing issued eight-year bonds with a face value of $6130000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are:

	Present value of 1 for 8 periods at 6%		0.627
	Present value of 1 for 8 periods at 8%		0.540
	Present value of 1 for 16 periods at 3%		0.623
	Present value of 1 for 16 periods at 4%		0.534
	Present value of annuity for 8 periods at 6%		6.210
	Present value of annuity for 8 periods at 8%		5.747
	Present value of annuity for 16 periods at 3%		12.561
	Present value of annuity for 16 periods at 4%		11.652

The present value of the principal is

A.

$3273420.

B.

$3310200.

C.

$3843510.

D.

$3818990.

2. Sheffield Company issues $26400000, 8%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 7%. What are the proceeds from the bond issue?

ff	3.5%	4.0%	7%	8%
Present value of a single sum for 5 periods	0.84197	0.82193	0.71299	0.68058
Present value of a single sum for 10 periods	0.70892	0.67556	0.50835	0.46319
Present value of an annuity for 5 periods	4.51505	4.45182	4.10020	3.99271
Present value of an annuity for 10 periods	8.31661	8.11090	7.02358	6.71008

A. $26400000

B.$27490323

C. $27497828

D.$27486253