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Waterway Company issues $25200000, 5%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December
Waterway Company issues $25200000, 5%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 4%. What are the proceeds from the bond issue?
ff | 2.0% | 2.5% | 4% | 5% |
Present value of a single sum for 5 periods | 0.90573 | 0.88385 | 0.82193 | 0.78353 |
Present value of a single sum for 10 periods | 0.82035 | 0.78120 | 0.67556 | 0.61391 |
Present value of an annuity for 5 periods | 4.71346 | 4.64583 | 4.45182 | 4.32948 |
Present value of an annuity for 10 periods | 8.98259 | 8.75206 | 8.11090 | 7.72173 |
Options:
| $26320277 |
| $26324347 |
| $26331852 |
| $25200000 |
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