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Spiller Corporation plans to issue 6%,6-year, $420,000 par value bonds payable that pay interest semiannually on June 30 and December 31 . The bonds are
Spiller Corporation plans to issue 6%,6-year, $420,000 par value bonds payable that pay interest semiannually on June 30 and December 31 . The bonds are dated January 1 of the current year and are issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of \$1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole dollar.) If the market rate of interest for the bonds is 4% on the date of issue, what will be the total cash proceeds from the bond issue? Table B.1* Present Value of 1 p=1/(1+i)n of 5\%), the factor is 0.5568. You would need to invest $2,784 today ($5,0000.5568). Table B. 2 Future Value of 1 f=(1+i)n Used to compute the future value of a known present amount. F 1.4859. The accumulated value is $4,457.70($3,0001.4859). Table B. 3 Present Value of an Annuity of 1 p=[11/(1+i)n]/i the equivalent of $12,835 today ($2,0006.4177). Table B. 4 Future Value of an Annuity of 1 f=[(1+i)n1]/i accumulates to $29,343.60($4,0007.3359)
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