A company issued $1,420,000 worth of 6-year bonds with 4% interest rate. Interest is to be paid annually. The bond issue date is January 1, 2020 and the company has a year-end of December 31.

Calculate the bond issue price under each market interest rate

MARKET INTEREST RATE

3%

4%

5%

For bond calculations use a financial calculator or PRESENT VALUE TABLES.

I NEED STEP BY STEP EXPLANATION PLUS ANSWER

THANKS.

I HAVE ADDED THE PRESENT VALUE FACTORS FOR A SINGLE VALUE SHEET AND A PRESENT VALUE FACTORS FOR AN ANNUITY SHEET TO HELP YOU OUT.

paid annually. The bond issue date is January 1, 2020 and the company has a year-end of A company issued $1,420,000 worth of 6-year bonds with a 4% interest rate. Interest is to be December 31. Calculate the bond issue price under each market interest rate. Present Value Factors for a Single Value 396 Appendix II PRESENT VALUE FACTORS Period Interest Rate 1% 296 396 4% 5% 6 796 996 109 119 1296 1396 1496 1596 16% 1796 1896 19% 2096 10.9901 0.9804 0.9709 0.9615 0.9524 0.94340.9346 0.9259 09174 0.9091 0.9009 0,8929 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 20.9803 0.9612 0.9426 0.9246 0.9070 0,8900 0,8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 0.6944 30.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.5787 4 0.9610 0.9238 0.888 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0,6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.4823 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.51940.4972 0.4761 0.4561 0.4371 0.4190 0.4019 6 0.9420 0.8880 0,8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349 70.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.31390.2959 0.2791 80.923 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.39090.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0935 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.1110 0.0985 0.0876 0.0779 15 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0835 0.0726 0.0649 16 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.0811 0.0708 0.0618 0.0541 17 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.0693 0.0600 0.0520 0.0451 18 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.13000.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 0.0376 19 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0,0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 0.0313 20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.0365 0.0308 0.0261 21 0.8114 0.6598 0.5375 0.4388 0.3589 0.2942 0.4388 0.35890.29420.2415 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.0370 0.0309 0.0259 0.0217 22 0.8034 0.6468 0.5219 0.4220 0.3418 0.2775 0.2257 0.1839 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.0382 0.0316 0.0262 0.0218 0.0181 0.0151 23 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.0329 0.0270 0.0222 0.0183 24 0.7876 0,6217 0.4919 0.3901 0.3101 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0,0659 0.0532 0.0431 0.0349 0.0284 0.0231 0.0188 0.0154 0.0126 25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.0160 0.0129 0.0105 30 0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0090 0.0070 0.0054 0.0042 0.0019 0.0013 0.0010 0.0007 40 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0019 50 0.6080 0.3715 0.2281 0.1407 0.0872 0.0543 0.0339 0.0213 0.0134 0,0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0004 0.0003 0.0002 0.0001 ICO ENTE CE P/Y VY MEM FORMA 0. 7 DEPR 4 DATE N NV N Appendix Present Value Factors for an Annuity 396 Interest Rate Period 196 296 496 596 696 796 896 996 1096 1196 12% 1396 1496 15% 16 1696 179 18 1990 2095 10.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 2 2 19704 1.9416 19135 1.8861 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 1.6052 1.5852 1.5656 1.5465 1.5278 3 3 2.9410 2.8839 2.8286 27751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.4437 2.4437 2.4018 2.3612 2.3216 2.2832 2.2459 2.2096 2.1743 2.1399 2.1065 4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.1024 3.0373 3.0373 2.9745 2.9137 2.8550 2.7982 2.7432 2.6901 2.6386 25887 5 4.85344.71354.5797 4,4518 4.3295 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 3,2743 3.1993 3.1272 3.0576 2.9906 6 5.7955 5.6014 5.41725.2421 5.0757 4.91734.7665 4.6229 4.48594.3553 4.3553 4.2305 4.1114 3.9975 3.9975 3.8887 3.7845 3.6847 3.5892 3.4976 3.4098 3.3255 76.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.1604 4.0386 3.9224 3.8115 3.7057 3.6046 8 8 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.74665.5348 5.5348 5.3349 5.1461 4.9676 4.7988 4,6389 4.4873 | 434361 4.2072 4,0776 3.9544 3.8372 98.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 4.6065 4.4506 4.3030 4.1633 40310 10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 6.1446 5.8892 5.6502 5.4262 5.2161 5.0188 4.8332 4.6586 4.4941 4.3389 4.1925 11 10.3676 9.7868 9.2526 8.7605 8.7605 8.3064 8.3064 7.8869 7.4987 7.1390 6.80526.4951 6.2065 5.9377 5.6869 5.4527 5.2337 5.0286 5.0286 4.8364 4.6560 4.4865 43271 12 11.2551 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.4924 6.1944 5.9176 5.6603 5.4206 5.1971 4.9884 4.9884 4.7932 4.6105 4.4392 13 12.1337 11.3484 10.6350 9.9856 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.5831 5.3423 5.1183 4.9095 4.7147 4.5327 14 13.0037 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.9819 6,6282 6.3025 6.3025 6.0021 5.7245 5.4675 5.2293 5.0031 4.8023 4.6106 15 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.8474 5.5755 5.3242 5.0916 4.8759 4.6755 16 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 7.3792 6.9740 6.6039 6.2651 5.9542 5.6685 5.4053 5.1624 4.9377 4.7296 17 15.5623 14.291913.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.5488 7.1196 6.7291 6.3729 6.0472 5.7487 5.4746 5.2223 49897 4.7746 18 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.7016 7.2497 6.8399 6.4674 6.1280 5.8178 5.5339 5.2732 5.0333 4.8122 19 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.8393 7.3658 6.9380 6.5504 6.1982 5.8775 5.5845 5.3162 5.0700 4.8435 2018.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.9633 74694 7.0248 6,6231 6.2593 5.9288 5.6278 5.3527 5.1009 4.8696 8.0751 21 18.8570 17.0112 15,4150 14.0292 12.8212 11.7641 10.8355 10.0168 9.2922 8.6487 7.5620 7.1016 6.6870 6.3125 5.9731 5.6648 5.3837 5.1268 4,8913 22 19.6604 17.6580 15.9369 14.4511 13.1630 12.0416 11.0612 10.2007 9.4424 8.7715 8.1757 7.6446 7.1695 6.7429 6.3587 6.0113 5.6964 5.4099 5.1486 49094 9.5802 8.8832 8.2664 7.71847.2297 23 20.4558 18.2922 16,4436 14.8568 13,4886 12.3034 11.2722 10.3711 6.7921 6.3988 6.0442 49245 5.1668 6.0442 5.7234 5.4321 7.7843 7.2829 6.8351 6.4338 24 21.2434 18.9139 16.9355 15.2470 13.7986 12.5504 11.4693 10.5288 9.7066 8.9847 8.3481 6.0726 5.1822 5.7465 5.4509 4.9371 4.9476 9.0770 25 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 5.7662 5.4669 5.1951 8.4217 7.8431 7.3300 6.8729 6.4641 6.0971 9.4269 8,6938 8.0552 7.4957 30 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 7.00276.5660 5.5168 5.2347 6.1772 5.B294 5.5168 9.7791 8.9511 8.2438 40 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 7.6344 7,1050 6.6418 6.2335 5.5482 5.8713 5.2582 4.9966 5.5541 5.2623 4.9995 50 39.1961 31.4236 25.7298 21.4822 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148 90417 8.3045 7.6752 7.1327 6.6605 6.2463 5.8801 4.9789