Question
Determining Bond Price On January 1, 2020, Arrow Inc. issued $200,000, 5% bonds due in 10 years. The bonds pay annual interest at the end
Determining Bond Price On January 1, 2020, Arrow Inc. issued $200,000, 5% bonds due in 10 years. The bonds pay annual interest at the end of each year equal to 5% of face value. The current market interest rate for bonds with similar risk is 4%. Determine the selling price of the bonds. Round answer to the nearest whole dollar. Do not use a negative sign with your answer.
Determining Annual Loan Payment
Americ Inc. borrowed $128,000 on January 1, 2020, with repayment scheduled over a 10-year period, with payments due at the end of each year at an interest rate of 7%. What is Americs annual payment on this loan?
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