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Bramble Corp. issues $5120000, 7%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December
Bramble Corp. issues $5120000, 7%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 6%. What are the proceeds from the bond issue?
ff | 3.0% | 3.5% | 6% | 7% |
Present value of a single sum for 5 periods | 0.86261 | 0.84197 | 0.74726 | 0.71299 |
Present value of a single sum for 10 periods | 0.74409 | 0.70892 | 0.55839 | 0.50835 |
Present value of an annuity for 5 periods | 4.57971 | 4.51505 | 4.21236 | 4.10020 |
Present value of an annuity for 10 periods | 8.53020 | 8.31661 | 7.36009 | 7.02358 |
a) $5336853
b) $5336038
c) $5338353
d) $5120000
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