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On September 30, 2016, the San Filipo Corporation issued 8% stated rate bonds with a face amount of $280 million. The bonds mature on September
On September 30, 2016, the San Filipo Corporation issued 8% stated rate bonds with a face amount of $280 million. The bonds mature on September 30, 2036 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30, (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: Determine the price of the bonds on September 30, 2016. Table values are based on: 40 5% Cash Flow Interest Principal Present Value Amount $11,200,000 $ 280,000,000 Price of bonds
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