On July 1, 2020 Grouper Limited issued bonds with a face value of $920,000 due in 20 years, paying interest at a face rate of 8% on January 1 and July 1 each year. The bonds were issued to yield 9%. The company's year-end was September 30. The company used the effective interest method of amortization.

Click here to view the factor table PRESENT VALUE OF 1.

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

(a)

Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV,calculate the premium or discount on the bonds.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)

Choose the answer from the menu in accordance to the question statementPremiumDiscount

on bond$Enter your answer in accordance to the question statement.

TABLEPV.1Present Value of 1

(n) periods

2%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

15%

1

0.98039

0.97561

0.97087

0.96156

0.95238

0.94340

0.93458

0.92593

0.91743

0.90909

0.90090

0.89286

0.86957

2

0.96117

0.95181

0.94260

0.92456

0.90703

0.89000

0.87344

0.85734

0.84168

0.82645

0.81162

0.79719

0.75614

3

0.94232

0.92860

0.91514

0.88900

0.86384

0.83962

0.81630

0.79383

0.77218

0.75132

0.73119

0.71178

0.65752

4

0.92385

0.90595

0.88849

0.85480

0.82270

0.79209

0.76290

0.73503

0.70843

0.68301

0.65873

0.63552

0.57175

5

0.90583

0.88385

0.86261

0.82193

0.78353

0.74726

0.71299

0.68058

0.64993

0.62092

0.59345

0.56743

0.49718

6

0.88797

0.86230

0.83748

0.79031

0.74622

0.70496

0.66634

0.63017

0.59627

0.56447

0.53464

0.50663

0.43233

7

0.87056

0.84127

0.81309

0.75992

0.71068

0.66506

0.62275

0.58349

0.54703

0.51316

0.48166

0.45235

0.37594

8

0.85349

0.82075

0.78941

0.73069

0.67684

0.62741

0.58201

0.54027

0.50187

0.46651

0.43393

0.40388

0.32690

9

0.83676

0.80073

0.76642

0.70259

0.64461

0.59190

0.54393

0.50025

0.46043

0.42410

0.39092

0.36061

0.28426

10

0.82035

0.78120

0.74409

0.67556

0.61391

0.55839

0.50835

0.46319

0.42241

0.38554

0.35218

0.32197

0.24719

11

0.80426

0.76214

0.72242

0.64958

0.58468

0.52679

0.47509

0.42888

0.38753

0.35049

0.31728

0.28748

0.21494

12

0.78849

0.74356

0.70138

0.62460

0.55684

0.49697

0.44401

0.39711

0.35554

TABLEPV.2Present Value of an Annuity of 1

PV=11(1+i)ni

(n) Periods

2%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

15%

1

0.98039

0.97561

0.97087

0.96154

0.95238

0.94340

0.93458

0.92593

0.91743

0.90909

0.90090

0.89286

0.86957

2

1.94156

1.92742

1.91347

1.88609

1.85941

1.83339

1.80802

1.78326

1.75911

1.73554

1.71252

1.69005

1.62571

3

2.88388

2.85602

2.82861

2.77509

2.72325

2.67301

2.62432

2.57710

2.53130

2.48685

2.44371

2.40183

2.28323

4

3.80773

3.76197

3.71710

3.62990

3.54595

3.46511

3.38721

3.31213

3.23972

3.16986

3.10245

3.03735

2.85498

5

4.71346

4.64583

4.57971

4.45182

4.32948

4.21236

4.10020

3.99271

3.88965

3.79079

3.69590

3.60478

3.35216

6

5.60143

5.50813

5.41719

5.24214

5.07569

4.91732

4.76654

4.62288

4.48592

4.35526

4.23054

4.11141

3.78448

7

6.47199

6.34939

6.23028

6.00205

5.78637

5.58238

5.38929

5.20637

5.03295

4.86842

4.71220

4.56376

4.16042

8

7.32548

7.17014

7.01969

6.73274

6.46321

6.20979

5.97130

5.74664

5.53482

5.33493

5.14612

4.96764

4.48732

9

8.16224

7.97087

7.78611

7.43533

7.10782

6.80169

6.51523

6.24689

5.99525

5.75902

5.53705

5.32825

4.77158

10

8.98259

8.75206

8.53020

8.11090

7.72173

7.36009

7.02358

6.71008

6.41766

6.14457

5.88923

5.65022

5.01877

11

9.78685

9.51421

9.25262

8.76048

8.30641

7.88687

7.49867

7.13896

6.80519

6.49506

6.20652

5.93770

5.23371

12

10.57534

10.25776

9.95400

9.38507

8.86325

8.38384

7.94269