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Notice of the both changes in computer TH P. Sed Factors That Affect the bond let YEONG INC. is considering the son of $100.000 e

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Notice of the both changes in computer TH P. Sed Factors That Affect the bond let YEONG INC. is considering the son of $100.000 e value, ten year en bonds. The bonds will pay o'n interest each December 1. The current market rate is therefore, the hands will be do Requiredi 1. For each of the following situation indicate whener you betave the company will receive a premium on the bondho or wts them at a cscount est toon van # Interest paid annually instead of annually Face 1. Assume tead that the man of Internet is the nominal rate is 1 Discount 2. For each hustion in part (1) Brove your statement by determining the neue mice of the bord geven the changes in (a) and (b). Da natround intermediate computation and round your first one to the near dolar Here are some time vakit of money factors Praesent value of an annuity, 10, 17%, PV7,02358 Present value of an anity, 30, 314.87747 Present at angle ameunt, n=10, 7PV0.50835 Present value of a single amount, -20.1-3 -0.55368 Prooft Bend Price Factors That Affect the Bond Issue Price YEONG INC. is considering the issue of $108,000 face value, ten-year term bonds. The bonds will pay 6% interest each December 31. The current market rate is 6%; therefore, the bonds will be issued at face value. Required: 1. For each of the following situations, indicate whether you believe the company will receive a premium on the bonds or will issue them at a discount or at face value. a. Interest is paid semiannually instead of annually. Face value b. Assume instead that the market rate of interest is 7%; the nominal rate is still 6%. Discount 2. For each situation in part (1), prove your statement by determining the issue price of the bonds given the changes in (a) and (b). Do not round intermediate computation and round your final answer to the nearest dollar. Here are some time value of money factors: Present value of an annuity, n=10, i=7%, PV=7.02358 Present value of an annuity, n=20, i=3%, PV=14.87747 Present value of a single amount, n=10, i=7%, PV-0.50835 Present value of a single amount, n=20, i=3%, PV=0.55368 Proof: Bond Price Fotch

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