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On January 1, 2020 Wildhorse Co. issued five-year bonds with a face value of $760,000 and a stated interest rate of 12% payable semiannually on
On January 1, 2020 Wildhorse Co. issued five-year bonds with a face value of $760,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%.
Present value table factors are: | |||
Present value of 1 for 5 periods at 10% | 0.62092 | ||
Present value of 1 for 5 periods at 12% | 0.56743 | ||
Present value of 1 for 10 periods at 5% | 0.61391 | ||
Present value of 1 for 10 periods at 6% | 0.55839 | ||
Present value of an ordinary annuity of 1 for 5 periods at 10% | 3.79079 | ||
Present value of an ordinary annuity of 1 for 5 periods at 12% | 3.60478 | ||
Present value of an ordinary annuity of 1 for 10 periods at 5% | 7.72173 | ||
Present value of an ordinary annuity of 1 for 10 periods at 6% | 7.36009 |
Calculate the issue price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,582.)
(One chance left to get the right answer, answers I've already tried are 818,685 and 818,682)
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