Canvas xc Question 5 B 12 pts Faith Corporation is issuing $350,000 of 10%, 4-year bonds when potential bond investors want a return of 12%. Interest is payable semiannually. Present Value of $1 Per. 1% 2% 3% 4% 5% 6% 1 0.990 0.980 0.971 0.962 0.952 0.943 7% 0.935 8% 0.926 9% 0.917 10% 11% 12% 0.909 0.901 0.893 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.842 0.857 0.826 0.812 0.797 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0,712 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 10 677699 5 0.951 0.906 0.8631 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.942 0.888 0.837 0.790 0,746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.933 0.813 0.871 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.502 0.540 0.467 0.434 0.404 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.905 0.820 0.614 0.676 0.744 0.558 0.508 0.463 0.422 0.386 0.352 0.322 Present Value of an Ordinary Annuity of $1 per period Per. 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 23456789 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.808 1.759 1.736 1.713 1.690 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.387 3.240 3.170 3.102 3.037 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.355 4.486 4.231 4.111 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 10 7.652 7.325 7.435 8.566 8.162 7.786 9.471 8.983 8.111 8.530 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.321 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.65 Requirement: 1) Calculate the present value of the Principal. 2) Calculate the present value of Interest Payments. 3) What is the selling price of the bond? 4) Did the bond sell at face value, discount, or a premium?