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Issue Price Youngblood Enterprises plans to issue $450,000 face value bonds with a stated interest rate of 8 %. They will mature the market rate
Issue Price Youngblood Enterprises plans to issue $450,000 face value bonds with a stated interest rate of 8 %. They will mature the market rate is (a) 8 % , ( b ) 6%, and ( c) 10%. 6 years. Interest will be paid semiannually. At the date of issuance, assume that Use the appropriate present value table: PV of $1 and PV Annuity of $1 Required: For each market interest rate, answer the following questions. Round calculations and answers o 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% 450.000 V 1. What is the amount due at maturity? 450.000 $ 450.000 2. How much cash interest will be paid every six months? 18,000 18,000 18,000 484,000 X 3. At what price will the bond be issued? 450,000 410,000 X
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