for the question below: a) Indicate which interest tables you referred to (i.e., Tables 1, 2, 3, 4) b) Indicate which of the following formulas you used to solve this problem: 1) FV = Sx F(1,n) 2) PV = S x F(i,n) 3) FVA -I x F(i,n) 4) PVA = I x F(1,0) c) Show your calculations for your answer. Lionel Inc. manufactures cycling equipment. Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,000,000 of 6% 12 -year corporate bonds on March 1st of the current year. Interest is payable every six months, with the first interest payment occurring on September 1st of the current year. At the time of the bond issuance, the market interest rate for similar financial instruments is 4% Required: As the controller of the company, determine the selling price of the bonds. Be sure to show your calculations and also clearly label your work in order to receive credit Terlede NE 2 DT 13 1.010 1.020 1.030 1.041 1.051 1.062 1.09 1.105 2.127 1.220 1.270 ACC 296 INTEREST TABLES TABLE 1 - FUTURE VALUE (AMOUNT) OF $1 20 50 220 1.070 3.030 2.000 1.050 1.060 1.090 1.100 1. 120 1.160 1.040 1.067 1.02 1.124 1.166 1.21.0 1.254 1.061 1.093 1.125 1.15 1.260 1.331 1.005 1.561 1.082 1.126 1.170 1.216 1.252 1.350 1.064 1.574 1.511 1.104 1.159 1.21 1.275 1.338 1.459 1.651 1.76 2.100 1.126 2.194 1.265 1.340 1.419 1.587 1.772 1.74 2.436 1.172 1.267 1.369 2.477 1.53 1.85 2.14 2,476 3.270 1.219 1.344 1.480 1.62 1.791 2.159 2.594 3.106 4. 1.268 1.425 1.601 1.790 2.012 2.518 3.138 3.896 5.935 1.486 2.191 2.553 6.728 9.646 19.463 1.608 2.033 2.563 6.341 9.850 15.179 35.236 5 6 1 10 22 20 24 199+ > 191 periode 1 2 3 2196 ISTE OLOS SCO 1606 5929" 5 9 SLEE POTP COPS 20 24 BIC 9' Periods SI 15 88 191 DIE TABLE 2 - PRESENT VALUE OF $1 15 21 SL 20 100 121 .990 9804 9709 9613 434 .9259 8923 3621 9803 9426 - 9240 .8900 .8573 -7922 7432 9706 9423 .8890 9396 -7938 7513 7110 -6407 9510 .9239 .8885 .850 9227 - 7921 7350 .6830 .6355 5523 -9515 9057 3626 .821 -7835 7693 .6800 6209 5674 ..0761 9423 -2903 766 7050 .6302 5645 5066 9235 18535 -7814 -7307 5765 -6276 SES . 4039 3050 - 9053 8204 7441 .6756 139 5584 1532 .3855 3220 .2267 .8875 -7885 .2014 5568 3971 -3186 2569 1685 8195 .6730 5537 4564 3767 .2146 1436 1037 0514 - 7576 5229 .491 3901 3101 .2470 2577 1015 0659 0286 TABLE 3 - FUTURE VALUE (AMOUNT) OF AN ORDINARY ANNUITY OF $1 24 50 101 125 16 1.000 1.000 1.000 1.000 1.000 1.000 10000 1.000 2.010 1.000 2.020 2030 1.000 2.040 2.050 2.060 2.000 2.100 2.120 20160 3.030 3.060 3.091 3.122 3.153 2.184 3.310 3.376 4.060 1.122 3.500 4.184 4.246 2.310 5.375 4.505 4.641 4.770 5.103 5.204 5.309 5.067 5.41 5.526 5.537 5.367 5.105 6.35 6.152 5.300 6.66 6.633 5.36 6.975 7336 7.726 8.115 3.97 6.286 1.583 8.92 9.214 9.569 9.897 10.617 11.06 32.300 17.519 10.462 10.950 11.464 12.006 12.571 13.111.497 15337 17.549 12.6) 13.412 16.192 15.026 15.917 16.090 18.977 21.38624.13330-150 21.321 22.019 24.297 26.870 29.778 33.066 36.786 15.76257.275 72.052 115.30 26. 973 30.122 34.26 39.085 30.01666.755 88.697 118.155 213.978 TABLE 4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF $1 21 S SE 100 9804 .3709 9615 -9524 . -9091 - 2259 1.970 1.942 1.333 1.800 .8929 1.359 1.630 1.783 1.136 2.941 2.884 2.329 2.775 1.690 2.723 2.673 2577 3.902 3.800 3.530 54 2.402 3. 4.85 6.723 4.30 4.52 9.170 3.037 2.298 4.325 6.212 5.795 5.500 3.993 3.737 5.37 5.242 3.600 5.075 4. 3.623 32275 7.652 72323 7.020 4.355 6.733 4.111 3.58 5.210 5.747 5.1.13 2.530 5.335 1344 50 7.722 11.255 10.575 6.145 5.650 19.385 16 4.833 3.350 18.046 15.051 16.837 13:590 12.45 11.670 7.53 5.194 5:19 9.88 21.26) 1.91 16.936 15.267 13.7 12.556 10.529 5.514 7.469 5.920 3.98 7.784 6.02 LLES 24 1 1066 SE + 11 LTLE C 59 LEGE LE 896 315 24