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On January 1, 2020, Cotton Corp. issued eight-year, 3% bonds with a face value of $600,000, with interest payable semi-annually on June 30 and December
On January 1, 2020, Cotton Corp. issued eight-year, 3% bonds with a face value of $600,000, with interest payable semi-annually on June 30 and December 31. The bonds were sold to yield 4%. Table values are: Present value of 1 for 8 periods at 3% .789 Present value of 1 for 8 periods at 4% .731 Present value of 1 for 16 periods at 1.5% .788 Present value of 1 for 16 periods at 2% .728 Present value of annuity for 8 periods at 3% 7.020 Present value of annuity for 8 periods at 2% 7.325 Present value of annuity for 16 periods at 1.5% 14.131 Present value of annuity for 16 periods at 2% 13.578 The present value of the interest is $126,360. $131,850. $122,202. $127,179
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