Air Destinations issues bonds due in 10 years with a stated interest rate of 9% and a face value of $500,000. 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.) Multiple Choice $468,845. $500,000 $331,023 $531155 TABLE 2 Present Value of $1 $1 PV = (1 + i)" ml 1.0% 1.596 2.046 2.5% 5.09 3.5% 4.59 5.09 5.5% 6.09 7.09 8.09 9.09 10.0% 11.0% 12.04 20.09 1 099010 098522 098039 097561 097087 096615 096154 095694 0.95235 094787 094540 093458 092593 0.91743 0.90909090020 0,89256083333 2 098030 0.97066 0.96117 095181 094260 0.93351 0.92456 091573 0.90703 089845 089000 0.87344 085734 0.84168 0.82645 0.81162 0.79719 0.69444 3 097059 0.95632 094232 0.92860 091514 0.90194 0.889000 87630 086384 0.85161 083962 0.81630 0.79383 0.77218 0.75131 073119 0.71178 0.57870 4 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856 0.82270 0.50722 0.79209 0.76290 0.73503 0.70843 068301 0.65873 0.63552 0.48325 3 0.95147 092826 090573 088385 0.36261 0.54197 082193 080245 0.78353 076513 074726 071299 0.68058 0.61993 062092 0.39345 0.56743 0-40185 6 0.94305 0.91454 0.88797 0.86330 0,83748 0.81350 0.79031 0.76790 0.74622 0.72525 070496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.33490 7 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73453 0.71068 0.68744 0.66506 0.62275 0.58349 0.54703 0.51316 0:48166 0.45235 027908 $ 0.92348 0.85771 085349 0,82075 0.78941 0.75941 073069 070319 0.67684 0.65160 062741 058201 0.54027 050187 0.46651 0.43993 0 40388 023257 90.91434 0.87459 0.83676 0.50073 0.76642 0.73373 0.70259 0.67290 0.6H461 0.61763 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0300610.19381 10 090529 086167 0.82035 0.78120 0.74409 0.70892067556064393 061391 058543 0.55839 050835 046319 042241 038554 035218 032197 0.16151 11 0.89632 0.84893 0.80426 0.76214 0.72242 065495 0.64958 0.61620 0.58465 0.55491 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28745 0.13459 12 088745 0.83639 0.78549 0,74356 0.70138 0.66178 0.63460058966 0.55684 052598 0.49697 0.44401039711 0.35553 031863 0.28584 0.25668 0:11216 13 0.87566 0.82403077309 0.72542 0.68095 0.61940 0.60057 056427 0.53032 049556 0.46884 0.41496 0.36770 0.32613028966 0.35751 0.22917 0.09346 14 080996 081165 0.75788 0.70773066112 061775 057748 051997 SOSOY 0.47257 044230035782 034046 0 29925026333 0.23199 0.20462 0.07789 15 085135 0.79985 0.74901 0.69047 054188 0.59689 055520 0.51072 0.48102 0.44793 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.16270 0.06491 16 0.85252 07303 0.72545 0.67362 0.63317 0.57671 0.53391 0.49447 0.45311 0.42458 0.39365 0.33873 0.29189 0.35187 0.21763 0.18529 0.16313 0.05409 17 0.84438 0.77639 071416 0.65720 0.60502 0.55720 0.51337 0.47318 0.43630 0:40345 0.37136 0.31657 0.27027 0.25107 0.19784 0.16963 014564 0.04507 18 083602 0.76491 0.70016 0.64117 0.58739 0.53836 049363 0.45280 0.41552 038147 0.5034 0.29556 0.25025 0.21199 0.17956 0.13252 0.13004 0.03756 19 082774 0.75361 0.65643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 036158 0.33051 0.27651 0.23171 0.19419 0.16351 0.13768 0.11611 0.03130 20 0.51954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0:41464 0.3769 0.34273 0.31110 0.25842 0.21455 0.17841 0.14564 0.124030 10367 0.02605 21 0.81143 0.73150 0.65978 0.59519 0.53755 0.48557 0.43883 0.19679 0.35894 0.32456 0.29416 0.24151 0.19866 0.1670 0.13513 0.11174 0.09256 0.02174 24 078757 0.69954 062172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 024698 019715 0.15770 0.126100 10153 008170 006583 0.01258 25 0.77977 0,68921060953053939 0.47761 0.42315 037512 033273 0.29530 0.36223 0.233000.15425 0.14602 0.11597 0.09230 0.07361 005882 0.01048 28 0.75684 065910 0.57437 050088 0.43708 0.38165 033348 0.29157 025509 022332 019563 0.15040 0.11591 0.08955 0.00934 005382 001187 0.00007 29 0.74934 0.64936 0.5631L 0.45566 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.15456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.00506 30 0.74192 0.63976 0.55207 0.47674 0.41190 0.35635 0.30832 0.26700 0,23138 0.00064 0.17411 0.13137 0.69939 0.07537 0.05731 0.04368 0.03338 0.00421 31 073458 0.63031 054125 0.46511 0.19999 034423 0.29616 0.25550 022036 0.19018 016425 0.12277 0.09202 000015005210 003935 0.02980 000351 40067165 0.55120 0:45289 037243 0.30656 025257 0.208290.17193 014205 0.11746 0.09722 0.0667 0.04003 003154 0.02209 001538 0.01075 0.00068 TABLE 4 Present Value of an ordinary Annuity of $1 PVA 1.09 1.5% 2.046 3.09 3.5 4.04 4.5 S. 5.5 6,096 7098 8.096 1 0.99010 0.54340 0.98522 1.95588 098039 19156 097087 1.91347 1.83339 097561 192742 285602 3.76197 2 197040 3 39-4099 4 90197 $48530 0.96615 096154 1999 18609 20164 2.77509 367305 362990 0.95694 0.95239 187267 185941 2.74596 2.72335 3.58753 3.54595 0.92593 1.78326 257710 291220 385438 9.09 10.09 11.09. 12.09 2009 091741 090909 0.90090 0.89286 0.83333 1.75911 1.73554 171252 169005 152778 253129 248685 244371 240183 210648 3.23972 316987310245 303735 258873 3.88965 3.79079 3.69590 3.60478 2.99061 0.94787 1 34632 269793 3.50515 427038 18388 330773 471346 2.82861 3.71710 457971 0.93455 10802 262432 338721 4.10030 267301 346511 3.31213 399271 178264 164583 451505 S.50513 6.34999 6 79345 5.69719 76.72819 6.59821 # 765160 748593 956002 36052 10 94700 5.60143 6.47199 732548 3.1624 398259 5.41719 5.33855 623023 011454 701908687396 7.7611760709 85502031661 5.34214 6000 671974 717014 7.97087 8.75306 5.15787 5.07550 5.19270 5.78637 6.4331 7.10752 7919727.72173 4.99550 4.91733 4.76654 561297 358258 5.38929 633457 620979597130 6.95220 6.10169 6.51523 753763 735009 7.02355 4.6225 4.48592 4.35536 4.23054 411141 3.32551 520637 503295 41614271220 456376 100459 574664 555482533493514612 496764 383716 62409 3.995255759025.537 532825403091 6.71008 6.41766614457 588923 5.65022 419247 743533 811090 11 10.36763 10.07112 2.73485.51401 9.25363 0.00155 8.7604 0641 3.00214 7.85617 7.49567 12 11 25508 1090751 1037534 1035776995400 966333 9.36507 11858 6325 161852 13 12.13374 1171159 1134557 1096319106349 10.30374993565 9.60259.39357 911708 35208135765 14 1300370 12.54338 1210025 1160091 11.29607 1092052 1056312 10:22283 9.1984 9.58965 9.29495 1.74547 15 13.16505 1334323 124936 123801 1193794 151741 11.11839 10.73955 10.79661003758 971335 9.10791 7.13896 6.30519 6.49506 6.30653 5.93770 4.32706 7.51608 716073681309 649236 1937 443922 7.90370 7.48690710336 6.74987 649355 433261 824424 7.786157.36660 090187 662017 461057 35941 06000 7.60608 7190876.31086 407547 SIS 16 14.71787 14.13136 1357771 13.05500 12.56110 12.09412 11.65330 11.35402 10.83777 30.46216 10.10500 9.44665 17 15.56225 14.90765 14.29117 13.71220 13.16612 12.65132 12.16567 1170719 11.27407 1086461 1047736 9.76322 18 1639827 15.67256 1499303 14.35336 1.75351 1118968 126590 12.159 11689591124607 10.32700 10.05900 19 17.22001 1642617 1567546 147889 142180 13.704 13.13394 1259329 12.065521160705 1115012 10 3500 2018 04555 1716864 1635143 15.58916 14.87747 14212401359033 1300794 12.46221 11.95038 1246992 19.59401 912164 9.37109 9.60300 3.31356 7.89371737916 6.97399 4.72956 354361102155 7.54879711963 477463 75563820141 770162 724967 481219 9501115049271929 736578434350 9.12855: 8.51356 796333 746944 486958 9.81815 21 18.85698 17.90014 17.01121 16.18455 15.41502 14.09797 14.02916 13:40472 12.0115 12.27524 11.76408 10.3583 10.01680 9.29224 8.64860 3.07507 7.56200 4.89133 25 22.02310 20 71961 1952546 18.42438 17.41315 16 45151 15622051421 14.09394 13.41193 12.78336 11.65358 10.67471 9.82258907704 143144 7.33314 494759 30 25 80771 2401584 2239646 20 93029 19.600H 18392051729203 16,28889 15.37245 2453375 13.76453 12.40904 1125778 1027365942691 169279 805518497894 40 3283469 29.91585 27.35546 28.10278 23.11477 21 35507 19.79277 18 40158 17.15909 16.04612 15.04630 13.33171 11.92461 10.75736 9.77905 195105 3.207 499000