Compute the following using the interest factors given below from the interest tables:

a) Compute the price (present value) of the bond issued by ABC Company: Face Value=$7,000,000. Nominal interest rate 5%, market rate 6%, life of bond is 8 years. present value of $1 interest factor for 8 years and 6%: .6768 present value of annuity interest factor 8 years 6%: 6.2098

b) VHP company leased a group of equipment from 5 years at $152,000 a year lease payments. Assuming the interest rate is 7% (interest factor 4.1002). Compute PVA of leased assets and lease liability.

c) XYK Company purchased a building for $1,300,000, paid $300,000 cash and borrowed 1,000,000 using 15 year 6% mortgage. Note: the present value of annuity interest facto for 15 years and 6% is 9.7122. compute the annual payments of the mortgage. (PVA/interest factor)