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On January 1, 2017, Coronado Industries issued eight-year bonds with a face value of $5800000 and a stated interest rate of 10%, payable semiannually on
On January 1, 2017, Coronado Industries issued eight-year bonds with a face value of $5800000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:
Present value of 1 for 8 periods at 10% | 0.467 | ||
Present value of 1 for 8 periods at 12% | 0.404 | ||
Present value of 1 for 16 periods at 5% | 0.458 | ||
Present value of 1 for 16 periods at 6% | 0.394 | ||
Present value of annuity for 8 periods at 10% | 5.335 | ||
Present value of annuity for 8 periods at 12% | 4.968 | ||
Present value of annuity for 16 periods at 5% | 10.838 | ||
Present value of annuity for 16 periods at 6% | 10.106 |
The present value of the interest is
$2881440.
$2930740.
$3094300.
$3143020.
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