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A company issued 7%, 20-year bonds with a face amount of $72 million. The market yield for bonds of similar risk and maturity is 8%.
A company issued 7%, 20-year bonds with a face amount of $72 million. The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) |
table values are based on: | ||
n= | 40 | |
i= | 4.0% | |
cash flow | amount | present value |
interest | ? | ? |
principal | 72,000,000 | 14,996,880 |
price of bonds | ? |
answer the "?" part thanks
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