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Prentice Ltd. was authorized to issue $1,500,000 of 10 year, 6% bonds payable on 1 August 20X2. The bonds are due on 31 July 2012
Prentice Ltd. was authorized to issue $1,500,000 of 10 year, 6% bonds payable on 1 August 20X2. The bonds are due on 31 July 2012 Interest payments dates were 31 July and 31 January. The bond was sold to yield 8%. (PV of $1. PVA of $1. and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the proceeds from issuance. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Proceeds from issuance 2. Calculate the proceeds from issuance if the yield rate is 5% and the bond is issued on 1 August 20X4, still with a maturity date of 31 July 2012. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Proceeds from issuance 3. Calculate the proceeds from issuance if the yield rate is 8%, and the bond is issued between interest dates, on 1 October 20X2, still with a maturity date of 31 July 2012. Exclude accrued interest. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Proceeds from issuance
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