The following terms relate to independent bond issues: 400 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 400 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 820 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,150 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.
TABLE 9-2 Present Value of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 .98039 .97087 .94340 .92593 90909 .89286 .86957 .95238 90703 94260 .85734 .82645 .79719 2 3 .96154 .92456 .88900 .85480 .89000 .83962 .75614 .65752 .91514 .79383 75131 .71178 .86384 .82270 93458 .87344 .81630 .76290 .71299 66634 4 .79209 .73503 .63552 .57175 .96117 .94232 .92385 .90573 .88797 .87056 .85349 .88849 .86261 5 .74726 .56743 .82193 .79031 .68058 .63017 6 .83748 .70496 50663 7 49718 43233 .37594 .32690 .66506 .62275 .81309 .78941 .78353 .74622 .71068 .67684 .64461 .61391 .58349 54027 .68301 .62092 56447 .51316 46651 42410 .38554 .35049 .62741 .58201 8 9 9 45235 40388 .36061 .32197 .76642 .75992 .73069 .70259 .67556 .64958 .62480 .60057 .83676 .82035 .80426 .59190 .55839 54393 50835 .50025 46319 10 28426 24718 .74409 11 .72242 .52679 47509 .42888 .28748 21494 .18691 12 .78849 .58468 .55684 .53032 .70138 49697 44401 .39711 .31863 .25668 13 .77303 .28966 .22917 20462 14 .75788 .57748 .50507 26333 .68095 .66112 .64186 .62317 15 .74301 46884 44230 41727 .39365 37136 41496 .38782 .36245 .33873 .31657 29586 16 17 .72845 .71416 .70016 .68643 .16253 .14133 .12289 .10686 .09293 .08081 48102 45811 .43630 .41552 39573 .37689 34185 .60502 .58739 .57029 18 .23939 21763 .19784 . 17986 .16351 .36770 .34046 .31524 29189 27027 25025 23171 21455 .18394 .15770 .13520 .35034 33051 . 18270 .16312 14564 13004 .11611 10367 .08264 19 .27651 .55526 .53391 51337 49363 47464 45639 .42196 .39012 36069 33348 .30832 20 .55368 .67297 .64684 31180 .14864 .12285 .07027 .06110 .04620 22 27751 24 .06588 .03493 .52189 49193 46369 43708 25842 22571 .19715 17220 .15040 .62172 .59758 .57437 .55207 26 .31007 28124 25509 23138 .02642 24698 21981 .19583 .17411 .10153 .08391 .06934 28 .11591 .09938 .05252 .04187 .03338 .01997 .01510 30 41199 .13137 .05731 6% 7% 8% 10% 12% 15% .94340 .93458 .92593 .86957 1.80802 2.62432 3.38721 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 90909 1.73554 2.48685 3.16987 3.79076 4.35526 .89286 1.69005 2.40183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 1.62571 2.28323 2.85498 3.35216 3.78448 4.16042 4.48732 4.77158 4.86842 4.10020 4.76654 5.38929 5.97130 6.51523 7.02358 7.49867 5.74664 1.83339 2.67301 3.46511 4.21236 4.91732 5.58238 6.20979 6.80169 7.36009 7.88687 8.38384 8.85268 9.29498 9.71225 10.10590 10.47726 6.24689 TABLE 9-4 Present Value of Annuity of $1 (N) Periods 2% 3% 5% 1 .98039 .97087 .96154 .95238 2 1.94156 1.91347 1.88609 1.85941 3 2.88388 2.82861 2.77509 2.72325 4 3.80773 3.71710 3.62990 3.54595 5 4.71346 4.57971 4.45182 4.32948 6 5.60143 5.41719 5.24214 5.07569 7 6.47199 6.23028 6.00205 5.78637 8 7.32548 7.01969 6.73274 6.46321 9 8.16224 7.78611 7.43533 7.10782 10 8.98259 8.53020 8.11090 7.72173 11 9.78685 9.25262 8.76048 8.30641 12 10.57534 9.95400 9.38507 8.86325 13 11.34837 10.63496 9.98565 9.39357 14 12.10625 11.29607 10.56312 9.89864 15 12.84926 11.93794 11.11839 10.37966 16 13.57771 12.56110 11.65230 10.83777 17 14.29187 13.16612 12.16567 11.27407 18 14.99203 13.75351 12.65930 11.68959 19 15.67846 14.32380 13.13394 12.08532 20 16.35143 14.87747 13.59033 12.46221 22 17.65805 15.93692 14.45112 13.16300 24 18.91393 16.93554 15.24696 13.79864 26 20.12104 17.87684 15.98277 14.37519 28 21.28127 18.76411 16.66306 14.89813 30 22.39646 19.60044 17.29203 15.37245 6.71008 7.13896 5.01877 5.33493 5.75902 6.14457 6.49506 6.81369 5.23371 5.93770 6.19437 7.94269 7.53608 5.42062 7.90378 6.42355 5.58315 5.72448 8.24424 6.62817 8.55948 8.35765 8.74547 9.10791 9.44665 9.76322 10.05909 10.33560 10.59401 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 6.81086 6.97399 7.11963 8.85137 9.12164 9.37189 9.60360 5.84737 5.95423 6.04716 6.12797 6.19823 7.24967 10.82760 11.15812 11.46992 12.04158 9.81815 10.20074 10.52876 7.36578 7.46944 7.64465 6.25933 6.35866 12.55036 8.36492 8.51356 8.77154 8.98474 9.16095 9.30657 9.42691 7.78432 11.06124 11.46933 11.82578 12.13711 12.40904 13.00317 13.40616 13.76483 10.80998 11.05108 11.25778 7.89566 7.98442 8.05518 6.43377 6.49056 6.53351 6.56598
