Question
On January 2, 2020, Bramble Corp. wishes to issue $5800000 (par value) of its 6%, 10-year bonds. The bonds pay interest annually on January 1.
On January 2, 2020, Bramble Corp. wishes to issue $5800000 (par value) of its 6%, 10-year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 12%. Using the interest factors below, compute the amount that Bramble will realize from the sale (issuance) of the bonds. Present value of 1 at 6% for 10 periods 0.5584 Present value of 1 at 12% for 10 periods 0.3220 Present value of an ordinary annuity at 6% for 10 periods 7.3601 Present value of an ordinary annuity at 12% for 10 periods 5.6502
$6414951
$6960042
$3833870
$6960000
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