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Problem 13-1. A company issued a 4%, 10-year bonds with a face amount of $75 million. The market yield for bonds of similar risk and
Problem 13-1. A company issued a 4%, 10-year bonds with a face amount of $75 million. The market yield for bonds of similar risk and maturity is 5%. Interest is paid semiannually. At what price did the bonds sell? (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. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.)
Table values are based on: |
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n = |
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I = |
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Cash Flow | Amount | Present Value |
Interest |
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Principal |
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Price of bonds |
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