provision: The directors of a company authorized the issuance of Ksh30,000,000/= of serial bonds on September, 1993. Interest is to be paid annually on September 1 at a rate of 9%. The indenture provides the following redemption

1. Ksh5,000,000/= of the issue to be redeemed on September 1, 1998;
2. Ksh5,000,000/= of the issue to be redeemed on September 1, 1998;
3. Ksh10,000,000/= of the issue to be redeemed on September 1, 2003;
4. Ksh15,000,000/= of the issue to be redeemed on September 1, 2007;

Required;

1. Find the purchase price of the issue on September 1, 1993, which would yield i=8% (10 marks)
2. What would be the value of bonds on september1, 2000? (10 marks)