Use the following information for the next four questions: (Question 1 of 4) Assume that the following information is relevant for one of the bond issues of Joanna Inc.: Item Value Face Value $500,000 10 Years Bond Term Stated Interest Rate (paid Semiannually) 12.00 % Market Interest Rate 9.00 % Issue Date 1/1/2017 Interest Payment dates each year Jun 30 & Dec 31 Note: the steps to solve Bond Problems are: 1. Market Rate by 2 2. Multiply Bond Term by 2 3. Calculate the "STATED" Annual Interest Pmt 4. + Annual Interest Pmt by 2 = Annuity Amt 5. Calculate FLOW #1 = PV of 1 6. Calculate FLOW #2 = PV of Annuity Present Value Factors: 4.5% 6% 9% 12% Present value of 1 for 10 periods: 0.644 0.558 0.422 0.322 Present value of 1 for 20 periods: 0.415 0.312 0.178 0.104 Present Value Factors: 4.5% 6% 8% 12% Present value of annuity for 10 periods: 7.913 7.360 6.418 5.650 Present value of annuity for 20 periods: 13.008 11.470 9.129 7.469 On January 1, 2017, the amount the bonds should sell for is: O A $500,100 B. None of the above. oc $546,240 OD $597,740 E $276,070 Question completoli Status: Use the following information for the next tour questions: (Question z OT 4) Assume that the following information is relevant for one of the bond issues of Joanna Inc.: Item Value Face Value $500,000 Bond Term 10 Years Stated Interest Rate (paid Semiannually) 12.00% Market Interest Rate 9.00 % Issue Date 1/1/2017 Interest Payment dates each year Jun 30 & Dec 31 Note: the steps to solve Bond Problems are: 1. + Market Rate by 2 2. Multiply Bond Term by 2 3. Calculate the "STATED" Annual Interest Pmt 4. + Annual Interest Pmt by 2 = Annuity Amt 5. Calculate FLOW #1 = PV of 1 6. Calculate FLOW #2 = PV of Annuity Present Value Factors: 4.5% 6% 9% 12% Present value of 1 for 10 periods: 0.644 0.558 0.422 0.322 Present value of 1 for 20 periods: 20 periods: 0.415 0.312 0.178 0.104 Present Value Factors: 4.5% 6% 8% 12% Present value of annuity for 10 periods: 7.913 7.360 6.418 5.650 Present value of annuity for 20 periods: 13.00 11.470 9 .129 7.469 The total amount of interest to be paid in cash over the life of the bonds is: O AS 900,000 B. None of the above. oc S 450,000 OD $1,200,000 O ES 300,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers