On January 1, 2017, Vaughn Corporation purchased 318 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2027, and pay interest annually beginning January 1, 2018. Vaughn purchased the bonds to yield 11%. How much did Vaughn pay for the bonds?

Vaughn Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,150 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, how much should Vaughn record as the cost of the machine?

Vaughn Corporation purchased a special tractor on December 31, 2017. The purchase agreement stipulated that Vaughn should pay $21,540 at the time of purchase and $5,230 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2017, at what amount, assuming an appropriate interest rate of 12%?

Vaughn Corporation wants to withdraw $108,620 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%?