White & Decker Corporation's 2019 financial statements included the following information in the long-term debt disclosure note: is in millions) Zero-coupon subordinated debentures, due 203): 2019 $422 The disclosure note stated the debenture bonds were issued late in 2013 and have a maturity value of $660 million. The maturity value indicates the amount that White & Decker will pay bondholders in 2033. Each individual bond has a maturity value (face amount) of $1160. Zero-coupon bonds pay no cash interest during the term to maturity. The company is "accreting" (gradually Increasing) the issue price to maturity value using the bonds' effective interest rate computed on an annual basis. (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD Of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the effective interest rate on the bonds. 2. Determine the issue price in late 2013 of a single, $1,160 maturity-value bond. (For all requirements, round your answers to 2 decimal places.) 1. Effective interest rate 2 Issue price Present and future value tables of $1 at 3% are presented below: 3 N FV $1 PV $1 1 1.03000 0.97087 2 1.06090 0.94260 3 1.09273 0.91514 4 1.12551 0.88849 5 1.15927 0.86261 6 1.19405 0.83748 7 1.22987 10.81309 8 1.26677 0.78941 9 1.30477 10.76642 10 1.34392 0.74409 11 1.38423 0.72242 12 1.42576 0.70138 13 1.46853 0.68095 14 1.51259 10.66112 15 1.55797 0.64186 16 1.60471 0.62317 FVA $1 PVA $1 1.0000 0.97087 2.0300 1.91347 3.0909 2.82861 4.1836 3.71710 5.3091 4.57971 6.4684 5.41719 7.6625 6.23028 8.8923 7.01969 10.1591 7.78611 11.4639 8.53020 12.8078 9.25262 14.1920 9.95400 15.6178 10.63496 17.0863 11.29607 18.5989 |11.93794 20.1569 12.56110 FVAD $1 PVAD $1 1.0300 1.00000 2.0909 1.97087 3.1836 2.91347 4.3091 3.82861 5.4684 4.71710 6.6625 5.57971 7.8923 6.41719 9.1591 7.23028 10.4639 8.01969 11.8078 8.78611 13.1920 9.53020 14.6178 10.25262 16.0863 10.95400 17.5989 11.63496 19.1569 12.29607 20.7616 12.93794 Sondra deposits $3,000 in an IRA account on April 15, 2021. Assume the account will earn 3% annually. If she repeats this for the next 9 years, how much will she have on deposit on April 14,2030