On May 1, 2016, Joe purchased $180,000 in zero-coupon bonds that mature on May 1, 2036. The bonds pay no interest during the period of time they are outstanding. The interest rate for such borrowings is at 9%. Interest compounds annually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

Calculate the price Joe paid for the bonds.

On May 1, 2016, Joe purchased $180,000 in zero-coupon bonds that mature on May 1, 2036. The bonds pay no interest during the period of time they are outstanding. The interest rate for such borrowings is at 996. Interest compounds annually (FV of $1. PV of $1. EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required Calculate the price Joe paid for the bonds. Bond value S30,947 S 30,947