Research Associates, Inc. plans to issue a 10-year semiannual bond with a face value of $645,000 with a coupon rate of 2%. On the date of issue, it expects the market rate for similar bonds will be 4%. Under these conditions, Research Associates would like to know how much this issuance would raise. What framework will you use to solve this problem? Cost-Volume-Profit (CVP) Counting - Permutation or Combination Time Value of Money (TVM) Binomial Probability - B(n, p) Normal or Standard Normal Distribution Complete the table below. For the amounts (PV, PMT, & FV) please enter the number only with no dollar sign or commas. Do not forget to include percent signs, where appropriate. TVM Data Table cly n PV PMT FV 1 What is the value of the annuity factor that is used to value the cash flows of the interest payments? What is the value of the discount factor, DF(), that is used to discount the maturity value? You may ignore How much does Research Associates raise from this issue? $ transaction costs. (round to cents ^ two decimal places). [UNGRADED On your own] Were you correct about whether the bond was issued at a premium, discount, or at par? 6% n\i 5 10 15 20 Present Value of 1 1% 2% 3% 4% 8% 12% 24% 0.95147| 0.90573 0.86261 0.82193 0.74726 0.68058 0.56743 0.34111 0.90529 0.82035 0.74409 0.67556 0.55839 0.46319 0.32197 0.11635 0.86135 0.74301 0.64186 0.55526 0.41727 0.31524 0.18270 0.039689 0.81954 0.67297 0.55368 0.45639 0.31180 0.21455 0.10367 0.013538 0.779771 0.60953 0.47761 0.37512 0.23300 0.14602 0.058823 0.0046180 0.74192 0.55207 0.41199 0.30832 0.17411 0.099377 0.033378 0.0015752 0.67165| 0.45289 0.30656 0.20829 0.097222 0.046031 0.010747 0.00018329 0.60804 0.137153 0.22811 0.14071 0.054288 0.021321 0.0034602 0.000021326 0.55045 0.30478 0.16973 0.095060 0.030314 0.0098759 0.0011141|0.0000024814 25 30 40 50 60 nli 5 10 15 20 Present Value of an Ordinary Annuity of 1 1% 2% 3% 4% 6% 8% 4.85343 4.71346 4.57971 4.45182 4.21236 3.99271 9.47130 8.98259 8.53020 8.1109 7.36009 6.71008 13.86505 12.84926 11.93794 11.11839 9.71225 8.55948 18.04555 16.35143 14.87747| 13.59033 11.46992 9.81815 22.02316 19.52346 17.41315 13.76483 12.78336 10.67478 25.80771 22.39646 19.60044 17.29203 13.76483 11.25778 32.83469 27.35548 23.11477) 19.79277| 15.04630 11.92461 39.19612 31.42361| 25.72976 21.48218 15.76186 12.23348 44.95504| 34.76089 27.67556| 22.62349 16.16143. 12.37655 12% 3.60478 5.65022 6.81086 7.46944) 7.84314 8.05518 8.24378 8.30450 8.32405 24% 2.74538 3.68186 4.00129 4.11026 4.14742 4.16010 4.16590 4.16658 4.16666 25 30 40 50 60 n\i 5 10 15 20 25 30 40 50 60 Present Value of an Annuity Due of 1 1% 2% 3% 4% 6% 8% 4.90197 4.80773 4.71710| 4.62990 4.46511 4.31213 9.56602 9.16224 8.78611 8.43533 7.80169 7.24689 14.00370 13.10625| 12.29607 11.56312 10.29498 9.24424 18.22601 16.67846| 14.32380 14.13394 12.15812 10.60360 22.24339| 19.91393 17.93554 16.24696 13.55036 11.52876 26.06579| 22.84438 20.18845 17.98371 14.59072 12.15841 33.16303| 27.90259 23.80822 20.58448 15.94907| 12.87858 39.5880832.05208 26.50166| 22.34147| 16.70757|| 13.21216 45.40459 35.45610 28.50583| 23.52843|| 17.13111 13.36668 12% 4.03735 6.32825 7.62817 8.36578 8.78432 9.02181 9.23303 9.30104 9.32294 24% 3.40428 4.56550 4.96160 5.09672 5.14281 5.15853 5.16657 5.16656 5.16665