Determining the Proceeds from Bond Issues

Madison Corporation is authorized to issue $810,000 of 5-year bonds dated June 30, 2019, with a stated rate of interest of 9%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019.

Required:

Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.)

1. The bonds to yield 10%	$fill in the blank 1
2. The bonds to yield 8%	$fill in the blank 2

images/ch14/wjia03h_ch14_table_3_4.gif 3 Present Value of 1: pn,i=(1+i)n1 Table 3 (concluded) Present Value of an Ordinary Annuity of 1: p0,n,i=i1(1+i)n1 Table 4 (concluded)