Issue Price Parker Limited plans to issue $400,000 face value bonds with a stated interest rate of 8%. They will mature in 6 years. Interest will be paid semiannually. At the date of issuance, assume that the market rate is (a) 8%, (b) 6%, and (c) 10%. 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 8% 6% 10% 1. What is the amount due at maturity? A " 2. How much cash interest will be paid every six months? " 3. At what price will the bond be issued? " TABLE 9-2 Present Value of $1 (N) S 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% .98039 .96117 .94232 92385 .90573 .88797 .87056 85349 .83676 .82035 80426 .78849 77303 .75788 .74301 .72845 .71416 .70016 .68643 .67297 .64684 .62172 .59758 57437 .55207 .97087 .94260 .91514 .88849 .86261 .83748 .81309 .78941 .76642 .74409 .72242 .70138 .68095 .66112 .64186 .62317 .60502 .58739 .57029 55368 .52189 49193 .46369 .43708 41199 .96154 .92456 .88900 85480 .82193 .79031 .75992 .73069 .70259 .67556 .64958 .62480 .60057 .57748 .55526 .53391 .51337 49363 47464 .45639 .42196 39012 .36069 33348 30832 .95238 .90703 .86384 .82270 .78353 .74622 .71068 .67684 .64461 .61391 .58468 .55684 .53032 .50507 48102 45811 43630 41552 39573 37689 34185 31007 28124 25509 23138 .94340 .89000 .83962 .79209 .74726 .70496 .66506 .62741 .59190 .55839 .52679 49697 46884 44230 41727 39365 37136 35034 33051 31180 27751 24698 21981 .19583 .17411 .93458 .87344 .81630 .76290 .71299 .66634 .62275 .58201 .54393 .50835 47509 44401 41496 .38782 .36245 .33873 .31657 29586 27651 .25842 .22571 .19715 .17220 . 15040 .13137 .92593 .85734 .79383 .73503 .68058 .63017 .58349 .54027 .50025 .46319 42888 .39711 .36770 34046 31524 .29189 27027 .25025 .23171 21455 .18394 .15770 .13520 .11591 .09938 .90909 .82645 .75131 .68301 .62092 .56447 .51316 46651 .42410 .38554 35049 .31863 .28966 .26333 23939 .21763 .19784 .17986 .16351 .14864 .12285 .10153 .08391 .06934 .05731 .89286 .79719 .71178 .63552 .56743 .50663 45235 40388 .36061 .32197 .28748 .25668 .22917 20462 .18270 . 16312 .14564 .13004 .11611 .10367 .08264 .06588 .05252 .04187 .03338 .86957 .75614 .65752 .57175 .49718 .43233 37594 32690 28426 24718 21494 .18691 .16253 .14133 12289 .10686 .09293 08081 .07027 .06110 .04620 03493 .02642 .01997 .01510 TABLE 9-4 Present Value of Annuity of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 98039 97087 96154 95238 94340 93458 9259390909 .89286 1.94156 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.73554 1.69005 2.88388 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.48685 2.40183 3.80773 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.16987 3.03735 4.71346 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.79076 3.60478 5.60143 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.35526 4.11141 6.47199 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637 4.86842 4.56376 7.32548 7.01969 6.73274 6.46321 6.20979 5.97130 5.74664 5.33493 4.96764 8.16224 7.78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.75902 5.32825 8.98259 8.53020 8.11090 7.72173 7 .36009 7.02358 6.71008 6.144575.65022 9.78685 9.25262 8.76048 8.306417 .886877 .49867 7.13896 6.49506 5.93770 10.57534 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 6.81369 6.19437 11.34837 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.10336 6.42355 12.10625 11.29607 10.56312 9.89864 9.29498 8 .74547 8.24424 7.36669 6.62817 12.84926 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 7.60608 6.81086 13.57771 12.56110 11.65230 10.83777 10.105909.446658.85137 7.82371 6.97399 14.29187 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.02155 7.11963 14.99203 13.75351 12.65930 11.68959 10.82760 10.059099.371898.20141 7.24967 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.36492 7.36578 16.35143 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 8.51356 7 .46944 22 17.65805 15.93692 14.45112 13.16300 12.04158 11.06124 10.20074 8.77154 7.64465 18.91393 16.93554 15.24696 13.79864 12.55036 11.46933 10.52876 8.98474 7.78432 26 20.12104 17.87684 15.98277 14.3751913.00317 11.82578 10.80998 9.16095 7.89566 21.28127 18.76411 16.66306 14.89813 13.40616 12.13711 11.05108 9.30657 7.98442 22.39646 19.60044 17.29203 15.37245 13.76483 12.40904 11.25778 9.42691 8.05518 15% 8 6957 1.62571 2.28323 2.85498 3.35216 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 6.43377 6.49056 6.53351 6.56598 18 19