Blossom Corporation is about to issue $1,000,000 of 8-year bonds that pay a 4% annual interest rate, with interest payable semi-annually. The market interest rate is 5%. Assuming all bonds are issued, how much can Blossom expect to receive for the sale of these bonds?

Of the variables listed in the dropdown, choose the variable being calculated?

Fill in the remaining variables in the table that follows. (Round rate to 1 decimal place, e.g. 25.5%.)

Variable		Financial Calculator or Tables		Excel
Present value		PV		PV		?
Future value		FV		FV		$
Interest rate		I		Rate			%
Amount of annuity payment		PMT		PMT		$
Number of periods		N		Nper

Calculate the proceeds from the sale of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.)

Proceeds from the sale of the bonds