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Powers Company wishes to issue AED 5.000.000 of 8%. 10 year bonds which pay interest semi- annually. The current discount rate is 6%. (15 points,

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Powers Company wishes to issue AED 5.000.000 of 8%. 10 year bonds which pay interest semi- annually. The current discount rate is 6%. (15 points, 5 pts ea) market rate 8a. What is the Present Value of the bond? AED - so '50DO DOO x14.877 - 385000 3 % and 20 years 8b. What is the Present Value of the Interest payments? AED 50000 8c. What amount should the bonds sell for? AED

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