Question 5 12 Tire Corporation is issuing $400.000 of 10%, 5-year bonds when potential bond investors are not 12%. Interest is payable semiannually. Present Value of $1 Per. 1% 2% 3% 4% 5% 1 0.990 6% 0.980 7% 89% 9 0.971 0.962 10 0.952 14 0.943 0.935 121 2 0.980 0926 0.961 0917 900 0.943 0.925 090 0.907 0.890 0.873 3 0857 O BA2 0.971 0.942 0828 0.915 0812 191 0.889 0.864 0.840 0.816 0794 0772 0.751 0139 4 0.961 0.924 1712 0.888 O 855 0823 0.792 0.763 0.735 0.70B OB3 05 0898 5 0.951 0.906 0.863 0.822 0.784 0747 0.713 0.681 0850 0521 583 OSAS 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.504 0535 0507 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0547 0513 DA82 AS2 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0540 0502 0 A6T DAA ADA 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.400 0.424 0.391 0381 0.905 0.820 0.744 0.676 0 614 0.558 0.508 0.463 0422 0.388 0352 0322 00 OG 10 0.555 0 500 DA22 Present Value of an Ordinary Annuity of $1 per period Per. 1% 2% 3% 4% 5% 8% 1 0.990 0.980 7% 89% 0971 99% 0962 VO 11 0 952 0.943 0935 12 2 1.970 0.926 0917 1.942 1.913 0909 1.886 1.859 1.833 1 BOB 1783 1750 3 2.941 2.884 11 2.829 2.775 10 2.723 2.673 2624 2 577 2.531 2 AST 2 AM 4 3.902 2.02 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 31TO 3102 3031 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.800 3.794 3905 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 44BB 4355 A21 AW 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5 206 5033 A BOB A112 A564 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5535 5.335 5.190 4908 8.566 7.786 7.435 9 7.108 6.802 6.247 8.162 6.515 5.995 5.759 5.537 5328 8.111 6.710 5850 10 9.471 8.530 7.722 7.024 6.418 6145 8.983 7.360 5889 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