Brief Exercise G-14

(a)Blossom Company is about to issue $250,000 of 6-year bonds paying an 8% interest rate, with interest payable semiannually. The discount rate for such securities is 8%.

Click here to view the factor table.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

How much can Blossom expect to receive for the sale of these bonds?(Round answer to 0 decimal places, e.g. 2,525.)

Blossomcan expect to receive$_________

(b)What is the present value of $29,400 to be received at the end of each of 12 periods, discounted at 12%?(Round answer to 2 decimal places, e.g. 25.25.)

Present value$___________