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Posted on Sep 09, 2024

Question 4 12 pts Balloon Corporation is issuing $700,000 of 8%, 4-year bonds when potential bond investors want a return of 1096. Interest is payable

Question 4 12 pts Balloon Corporation is issuing $700,000 of 8%, 4-year bonds when potential bond investors want a return of 1096. Interest is payable semiannually. 9. Present Value of $1 Per. 1% 296 3% 1 0.990 0.980 0 971 2. 0 980 0.981 0 943 3 0.971 0.942 0915 4 0.961 0.924 0.888 5 0.951 0.906 0.863 6 0.942 0.888 0.837 7 0.933 0.871 0.813 8 0.923 0.853 0 789 9 0.914 0.837 0.766 10 0.905 0.820 0.744 4% 0.962 0.925 0 889 0.855 0 822 0.790 0.760 0.731 0.703 0.676 5% 0.952 0.907 0.864 0823 0.784 0.746 0.711 0.677 0.645 0.614 6% 0.943 O 890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 7% 0.935 0873 0.816 0.763 0.713 0.6.6.0 0.623 0.582 0.544 0.500 10"/ 11% 12% 0.920 0.917 0.900 0901 0893 0.857 0.842 0826 0.812 0797 0.794 0.772 0.751 0.731 0.712 0.735 0 708 0.683 0.859 0.636 0.681 0.650 0.621 0.593 0.567 0.630 0.596 0.564 0.535 0.507 0.583 0 547 0.513 0.482 0.452 0.540 0.502 0.467 0.434 0.404 0.500 0.460 0.424 0.391 0.381 0.463 0.422 0.386 0.352 0.322 | Present Value of an Ordinary Annuity of $1 per period Per. 1% 2% 3% 4% 5% 6% 1 0.990 0.980 0.971 0.962 0.952 0.943 2 1.970 1.942 1.913 1886 1.859 1.833 3 2.941 2.884 2.829 2.775 2.723 2673 4 3.902 3.808 3.717 3.630 3.546 3.465 5 4.853 4.713 4.580 4.452 4.329 4.212 6 5.795 5.601 5.417 5.242 5.076 4.917 7 6.728 6.472 6.230 6.002 5.786 5.582 8 7.652 7.325 7.020 6.733 6.463 6.210 9 8.566 8.162 7.786 7.435 7.108 6.802 10 9.471 8.983 8.530 8.111 7.722 7.360 7% 0.935 1.808 2.624 3.387 4.100 4.767 5.389 5.971 6.515 7.024 8% 9%. 10% 11% 12% 0.926 0 917 0.909 0.901 0.893 1.783 1.759 1.736 1.713 1.690 2.577 2.531 2.487 2.444 2402 3.312 3.240 3.170 3.102 3.037 3.993 3.890 3.791 3.896 3.805 4.623 4.486 4.355 4.231 4.111 5.206 5033 4.868 4.712 4.564 5.747 5.535 5.335 5.146 4.968 6.247 5.995 5.759 5.537 5.328 6.710 6.418 6.145 5.889 5.650 Reairement: 0.304 O SOT 7 8 9 TO 0.933 0923 0.914 0.8171 0.853 0837 0.820 0.760 0.731 0.703 0.70 0789 0 700 0.744 0711 0677 0.045 0614 0030 OB 0 540 00 0.627 0.592 0.556 0544 0 508 0.400 9482 0434 0301 0.352 0.104 0301 0322 0403 0 386 Present Value of an ordinary Annuity of $1 per period Per 1% 5% 1 0.990 0980 0071 0.062 0.952 0.943 2 1.970 1 942 1.913 1.886 1 859 1.833 3 2.941 2.834 2.829 2.775 2.723 2 673 3.902 3.808 3 717 3.630 3.546 3.465 5 4.853 4.713 4.580 4.452 4.329 4 212 6 5.795 5.601 5.417 5 242 5.076 4.917 7 6.728 6.472 6.230 6002 5.786 5.582 8 7 652 7.325 7.020 6.733 6.463 6.210 9 8.566 8. 162 7.786 7.435 7. 108 6.802 10 9.471 8.983 8.530 8.111 7722 7.360 7% BY 0.035 0926 1 808 2624 2 577 3.387 3 312 4.100 3.993 4.767 4 623 5.389 5 206 5.971 5.747 6.515 6.247 7.024 6.710 994 10% 11% 12% 0017 0909 0901 0.893 1735 1.713 1.600 2531 2.487 2.444 2.402 3.240 3.170 3.102 3037 3.890 3.791 3.806 3 605 4.488 4.355 4.231 4111 5033 4.868 4 712 4 554 5.535 5.145 4.968 5.995 5.759 5.537 5.328 6.418 6.145 5.889 5 550 Requirement: 1) Calculate the present value of the Principal. 2) Calculate the present value of Interest Payments. 3) What is the selling price of the bond? 4) Did the bond sell at face value, discount, or a premium? Edit View Insert Format Tools Table . 9 F DS T 0.304 O SOT 7 8 9 TO 0.933 0923 0.914 0.8171 0.853 0837 0.820 0.760 0.731 0.703 0.70 0789 0 700 0.744 0711 0677 0.045 0614 0030 OB 0 540 00 0.627 0.592 0.556 0544 0 508 0.400 9482 0434 0301 0.352 0.104 0301 0322 0403 0 386 Present Value of an ordinary Annuity of $1 per period Per 1% 5% 1 0.990 0980 0071 0.062 0.952 0.943 2 1.970 1 942 1.913 1.886 1 859 1.833 3 2.941 2.834 2.829 2.775 2.723 2 673 3.902 3.808 3 717 3.630 3.546 3.465 5 4.853 4.713 4.580 4.452 4.329 4 212 6 5.795 5.601 5.417 5 242 5.076 4.917 7 6.728 6.472 6.230 6002 5.786 5.582 8 7 652 7.325 7.020 6.733 6.463 6.210 9 8.566 8. 162 7.786 7.435 7. 108 6.802 10 9.471 8.983 8.530 8.111 7722 7.360 7% BY 0.035 0926 1 808 2624 2 577 3.387 3 312 4.100 3.993 4.767 4 623 5.389 5 206 5.971 5.747 6.515 6.247 7.024 6.710 994 10% 11% 12% 0017 0909 0901 0.893 1735 1.713 1.600 2531 2.487 2.444 2.402 3.240 3.170 3.102 3037 3.890 3.791 3.806 3 605 4.488 4.355 4.231 4111 5033 4.868 4 712 4 554 5.535 5.145 4.968 5.995 5.759 5.537 5.328 6.418 6.145 5.889 5 550 Requirement: 1) Calculate the present value of the Principal. 2) Calculate the present value of Interest Payments. 3) What is the selling price of the bond? 4) Did the bond sell at face value, discount, or a premium? Edit View Insert Format Tools Table . 9 F DS T