Question 14

Concord Corporation issues $4930000, 8%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 7%. What are the proceeds from the bond issue?

ff 3.5% 4.0% 7% 8%

Present value of a single sum for 5 periods 0.84197 0.82193 0.71299 0.68058

Present value of a single sum for 10 periods 0.70892 0.67556 0.50835 0.46319

Present value of an annuity for 5 periods 4.51505 4.45182 4.10020 3.99271

Present value of an annuity for 10 periods 8.31661 8.11090 7.02358 6.71008

a)$5133511

b)$4930000

c)$5135011

d)$5132696