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On January 1, Kuapono, Inc. issued a 30-year semiannual bond with a face value of $475,000 paying 12%. On the date of issue, the market
On January 1, Kuapono, Inc. issued a 30-year semiannual bond with a face value of $475,000 paying 12%. On the date of issue, the market rate for similar bonds was 2%. Kuapono would like to know how much this issuance would raise. Complete the table below. Be sure to enter dollar signs, commas, and percent signs when appropriate. TVM Data Table 12% cly n PV PMT - FV $47500C 30 2%. 2 60 1% What is the value of the ordinary annuity factor, AO(), that is used to value the cash flows of the interest payments? What is the value of the discount factor, DF(), that is used to discount the maturity value? How much does Kuapono raise from this issue? You may ignore transaction costs
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