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On May 1, 2020, Novak Corporation, a publicly listed corporation, issued $ 188,600 of five-year, 8% bonds, with interest payable semi- annually on November 1
On May 1, 2020, Novak Corporation, a publicly listed corporation, issued $ 188,600 of five-year, 8% bonds, with interest payable semi- annually on November 1 and May 1. The bonds were issued to yield a market interest rate of 6%. Novak uses the effective interest method. 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) Calculate the present value (issue price) of the bonds on May 1 using (1) factor Tables A.2 and A.4, (2) a financial calculator, or (3) Excel function PV. (Hint: Refer to Chapter 3 for tips on calculating.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places, e.g. 1,251,24.) Present value of the bonds $ e Textbook and Media
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