Issue Price Matthison Harcourt plans to issue $300,000 face value bonds with a stated interest rate of 10%. They will mature in 6 years. Interest will be paid semiannually. At the date of issuance, assume that the market rate is (a) 10%, (b) 8%, and (c) 12% Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: For each market interest rate, answer the following questions. Round calculations and answers to the nearest whole dollar. Due to differences in rounding when using the present value factors, you need to round your answer for the ISSUE PRICE in the first column only to the nearest 100. Market Rate 10% 8% 12% 1. What is the amount due at maturity? 300,000 $ 300,000 300,000 2. How much cash interest will be paid every six months? 15,000 15,000 15,000 3. At what price will the bond be issued? 300,000 155,776 X 155,776 X TABLE 9-2 Present Value of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 98039 .97087 92593 .89286 .86957 .96154 .92456 2 .96117 .94260 .94340 .89000 .83962 .93458 .87344 .81630 .79719 .75614 .85734 ..79383 .90909 .82645 .75131 .68301 3 .94232 .88900 .65752 .91514 .88849 .71178 .63552 4 .92385 .85480 ..76290 .57175 .79209 .74726 5 .86261 .71299 56743 49718 .95238 .90703 .86384 .82270 .78353 .74622 .71068 .67684 .64461 .61391 .62092 .56447 .83748 .70496 .66634 .90573 .88797 .87056 .85349 6 7 43233 73503 68058 .63017 .58349 .54027 .81309 .62275 51316 .37594 .82193 .79031 .75992 .73069 .70259 .67556 .64958 .66506 .62741 8 .78941 46651 .32690 .58201 .54393 9 .83676 .76642 42410 .59190 .55839 .50025 .46319 28426 24718 10 .74409 .82035 .80426 11 .72242 .58468 42888 21494 12 50663 45235 40388 .36061 .32197 28748 .25668 .22917 20462 18270 .16312 .14564 .55684 .18691 .78849 .77303 .62480 .60057 .50835 .47509 44401 .41496 .38782 .36245 .39711 .36770 .38554 35049 31863 .28966 .26333 .23939 13 .53032 .16253 14 .70138 .68095 .66112 .64186 .62317 .60502 .50507 .57748 .55526 .34046 .31524 15 .53391 .75788 .74301 .72845 .71416 .70016 .68643 16 17 48102 45811 43630 41552 .33873 .31657 .29189 .27027 .51337 18 25025 .52679 49697 46884 44230 41727 39365 37136 35034 33051 31180 27751 24698 21981 .19583 .17411 .58739 .57029 .13004 .21763 .19784 . 17986 .16351 .14864 .12285 .29586 27651 .25842 19 .14133 .12289 .10686 .09293 .08081 .07027 .06110 .04620 .03493 39573 .37689 .11611 23171 .21455 20 .67297 .55368 .10367 22 34185 .18394 49363 47464 45639 .42196 .39012 36069 33348 30832 .52189 49193 24 31007 .10153 .64684 .62172 .59758 .57437 .55207 26 28 .08391 46369 43708 41199 .22571 .19715 .17220 . 15040 .13137 28124 25509 23138 .15770 .13520 .11591 .09938 .08264 .06588 .05252 .04187 .03338 .02642 .01997 .06934 30 .05731 .01510 TABLE 9-4 Present Value of Annuity of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 .93458 .92593 .86957 98039 1.94156 94340 1.83339 .95238 1.85941 2.72325 .89286 1.69005 2 1.80802 97087 1.91347 2.82861 3.71710 4.57971 1.78326 2.57710 3 .90909 1.73554 2.48685 3.16987 2.88388 2.62432 .96154 1.88609 2.77509 3.62990 4.45182 5.24214 2.40183 2.67301 3.46511 1.62571 2.28323 2.85498 3.35216 4 3.54595 3.38721 3.31213 3.03735 3.80773 4.71346 5 4.21236 4.10020 3.79076 3.60478 4.32948 5.07569 6 5.41719 4.35526 4.11141 4.76654 5.38929 7 6.23028 6.00205 4.86842 4.56376 8 5.60143 6.47199 7.32548 8.16224 8.98259 6.73274 5.78637 6.46321 7.10782 7.72173 4.91732 5.58238 6.20979 6.80169 7.36009 9 10 11 7.01969 7.78611 8.53020 9.25262 9.95400 10.63496 11.29607 7.43533 8.11090 8.76048 9.38507 9.98565 10.56312 11.11839 4.96764 5.32825 5.65022 5.93770 6.19437 6.42355 6.62817 12 13 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 14 9.78685 10.57534 11.34837 12.10625 12.84926 13.57771 14.29187 14.99203 15.67846 16.35143 7.88687 8.38384 8.85268 9.29498 9.71225 10.10590 10.47726 10.82760 15 6.81086 3.78448 4.16042 4.48732 4.77158 5.01877 5.23371 5.42062 5.58315 5.72448 5.84737 5.95423 6.04716 6.12797 6.19823 6.25933 6.35866 8.30641 8.86325 9.39357 9.89864 10.37966 10.83777 11.27407 11.68959 12.08532 12.46221 13.16300 13.79864 16 17 5.97130 6.51523 7.02358 7.49867 7.94269 8.35765 8.74547 9.10791 9.44665 9.76322 10.05909 10.33560 10.59401 11.06124 11.46933 11.82578 12.13711 11.93794 12.56110 13.16612 13.75351 14.32380 14.87747 15.93692 16.93554 11.65230 12.16567 12.65930 13.13394 13.59033 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 8.77154 8.98474 9.16095 9.30657 9.42691 6.97399 7.11963 7.24967 18 19 11.15812 11.46992 7.36578 7.46944 20 22 7.64465 17.65805 18.91393 12.04158 12.55036 24 9.60360 9.81815 10.20074 10.52876 10.80998 11.05108 11.25778 6.43377 26 14.45112 15.24696 15.98277 16.66306 17.29203 20.12104 21.28127 22.39646 17.87684 18.76411 19.60044 28 14.37519 14.89813 15.37245 7.78432 7.89566 7.98442 8.05518 13.00317 13.40616 13.76483 6.49056 6.53351 6.56598 30 12.40904