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ds with a face value of $2,600,000 and a coupon rate of 9 percen Qually every June 30 and December 31. All of the bonds were solc terest amortization method. Assume an annual market rate of inter PVA of $1) tables provided. ear? e dollar amount.

ds with a face value of $2,600,000 and a coupon rate of 9 percen Qually every June 30 and December 31. All of the bonds were solc terest amortization method. Assume an annual market rate of inter PVA of $1) tables provided. ear? e dollar amount.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Present Value of $1. Periods 1.0% 1 2 3 4 5 6 7 8 9 10 HRBHSR22808 Present Value of $1 Periods 1.0% 11 12 13 14 15 16 17 18 19 25 30 Present Periods 1 2 3 4 5 6 7 8 9 10 0.99010 0.98030 0.97059 11 12 13 14 15 0.96098 0.95147 0.94205 0.93272 0.92348 091434 0.90529 16 17 18 19 20 25 30 0.89632 0.88745 0.87866 0.86996 0.86135 0.85282 0.84438 0.83602 0.82774 0.81954 0.77977 0.74192 Value of $1 8.0% 0.92593 0.85734 0.79383 Present Value of $1 Periods 8.0% 0,73503 0.68058 0.63017 0.58349 0.54027 0,50025 0.46319 0.42888 0.39711 0.36770 0.34046 0.31524 0,29189 0.27027 0.25025 0.23171 021455 0,14602 0.09938 2.0% 098039 0.96117 0.94232 0.92385 0.90573 0.88797 0.87056 0.85349 0.83676 0.82035 2.0% 0.80426 0.78849 0.77303 0.75788 0.74301 0.72845 0.71416 0.70016 0.68643 0.67297 0.60953 0.55207 9.0% 0.91743 0.84168 0.77218 0.70843 064993 0.59627 0.54703 0.50187 0.46043 0.42241 0.0% 0.38753 0.35553 0.32618 0.29925 0.27454 0.25187 0.23107 0.21199 0.19449 0.17843 0.11597 0.07537 3.0 % 0.97087 0.94260 091514 0.88849 0.86261 0.83748 0.81309 0.78941 0.76642 0.74409 3.0%- 0.72242 0.70138 0.68095 0.66112 0.64186 0.62317 0.60502 0.58739 0.57029 0.55368 0.47761 0.41199 10,0% 0.90909 0.82645 0.75131 068301 0.62092 0.56447 051316 0.46651 0.42410 0.38554 10.0% 0.35049 031863 0.28966 0.26333 0.23939 021763 0.19784 017986 0.16351 014064 0.09230 0.05731 3.75% 0.96306 0.92902 089544 0.36307 083188 080181 0.77283 0.74490 0.71797 0,69202 3.75% 0.66701 0.64290 0.61966 0.59726 0.57568 0.55487 0.53481 0.51548 0.49685 0.47889 0.39838 0.33140 11.0% 0.90090 081162 0.73119 065873 059345 053454 0.48166 0.43393 0.39092 0.35218 11.0% 0.31728 0.28584 0.25751 0.23199 0.20900 0,18829 0.16963 0.15282 0.13768 012403 0.07361 004368 4.0% 0.96154 0.92456 0.88900 0.85480 0.82193 0.79031 0.75992 0.73069 0.70259 0.67556 0,40388 0.36061 0.32197 12.0% 0.89206 079715 0.71178 0.63552 0.56743 0.50663 0.45235 12.0% 0.28748 0.25668 0.22917 064958 062460 050057 057748 055526 4.0% 053391 051337 0,20462 0.18270 0.16312 0.14554 0.13004 0.11611 0.10367 0,05882 0.03338 049363 0.47464 0.45639 037512 0.30832 13.0% 0.88496 0.78315 0.69305 061332 054276 0.48032 0.42506 037616 0.33288 0.29459 13.0% 0.26070 0.23071 0.20416 0.18068 0.15909 0.14150 0,12522 011081 0.09806 008678 004710 0.02557 4.25% 0.95923 0.92013 0.88262 0.84663 081212 0.77901 0.74725 0.71679 0.68757 065954 4.29% 063265 0.60686 5.0% 0.58468 0.55684 053032 050507 0.48102 045811 043630 0.47275 041552 0.45348 0.39573 043499 0.37689 0.35326 0.29530 0.28689 -0.23138 0.58212 055839 0.53562 051379 0.49284 16.0% 0.37719 0.76947 0.67497 0.59208 0.51937 0.45559 0.39964 0.35056 0.30751 0.26974 14.0% 0.23662 0.20756 5.0% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.18207 0.15971 0.14010 0.12289 0.10780 009456 0.08295 0.07276 0,03779 0.01963 0.67684 064461 0.51391 15.0% 0.86957 0.75614 0.65752 0.57175 0.49718 0.43233 0.37594 0.32690 028426 0.24718 15.0% 021494 0.18691 016253 014133 012289 010686 009293 0.00081 007027 006110 003038 001510 6.0% 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.66506 0.62741 0.59190 0.55839 6.0% 0.52679 0,49697 0.46884 044230 041727 0.39365 0.37136 0.35034 0.33051 0.31180 0.23300 0.17411 20.0% 0.83333 0.69444 0.57870 0.48225 0.40188 0.33490 0.27908 0.23257 0.19381 0.16151 20.0% 0.13459 011216 0.09346 007789 0.06491 0.05409 0.04507 003756 003130 0.02608 001048 000421 7.0% 0.93458 0.87344 0.81630 0.76290 - 071299 0.66634 062275 0.58201 054393 050835 7.0% 0.47509 044401 0.41496 0.38782 0.36245 033873 031657 0.29586 0.27651 0.25842 0.18425 013137 25.0% 0.80000 0.64000 051200 0.40960 032768 0.26214 0.20972 016777 013422 0.10737 25.0% 008590 006872 005498 004398 003518 002815 002252 001801 001441 0.01153 000378 000124
Transcribed Image Text:Present Value of $1. Periods 1.0% 1 2 3 4 5 6 7 8 9 10 HRBHSR22808 Present Value of $1 Periods 1.0% 11 12 13 14 15 16 17 18 19 25 30 Present Periods 1 2 3 4 5 6 7 8 9 10 0.99010 0.98030 0.97059 11 12 13 14 15 0.96098 0.95147 0.94205 0.93272 0.92348 091434 0.90529 16 17 18 19 20 25 30 0.89632 0.88745 0.87866 0.86996 0.86135 0.85282 0.84438 0.83602 0.82774 0.81954 0.77977 0.74192 Value of $1 8.0% 0.92593 0.85734 0.79383 Present Value of $1 Periods 8.0% 0,73503 0.68058 0.63017 0.58349 0.54027 0,50025 0.46319 0.42888 0.39711 0.36770 0.34046 0.31524 0,29189 0.27027 0.25025 0.23171 021455 0,14602 0.09938 2.0% 098039 0.96117 0.94232 0.92385 0.90573 0.88797 0.87056 0.85349 0.83676 0.82035 2.0% 0.80426 0.78849 0.77303 0.75788 0.74301 0.72845 0.71416 0.70016 0.68643 0.67297 0.60953 0.55207 9.0% 0.91743 0.84168 0.77218 0.70843 064993 0.59627 0.54703 0.50187 0.46043 0.42241 0.0% 0.38753 0.35553 0.32618 0.29925 0.27454 0.25187 0.23107 0.21199 0.19449 0.17843 0.11597 0.07537 3.0 % 0.97087 0.94260 091514 0.88849 0.86261 0.83748 0.81309 0.78941 0.76642 0.74409 3.0%- 0.72242 0.70138 0.68095 0.66112 0.64186 0.62317 0.60502 0.58739 0.57029 0.55368 0.47761 0.41199 10,0% 0.90909 0.82645 0.75131 068301 0.62092 0.56447 051316 0.46651 0.42410 0.38554 10.0% 0.35049 031863 0.28966 0.26333 0.23939 021763 0.19784 017986 0.16351 014064 0.09230 0.05731 3.75% 0.96306 0.92902 089544 0.36307 083188 080181 0.77283 0.74490 0.71797 0,69202 3.75% 0.66701 0.64290 0.61966 0.59726 0.57568 0.55487 0.53481 0.51548 0.49685 0.47889 0.39838 0.33140 11.0% 0.90090 081162 0.73119 065873 059345 053454 0.48166 0.43393 0.39092 0.35218 11.0% 0.31728 0.28584 0.25751 0.23199 0.20900 0,18829 0.16963 0.15282 0.13768 012403 0.07361 004368 4.0% 0.96154 0.92456 0.88900 0.85480 0.82193 0.79031 0.75992 0.73069 0.70259 0.67556 0,40388 0.36061 0.32197 12.0% 0.89206 079715 0.71178 0.63552 0.56743 0.50663 0.45235 12.0% 0.28748 0.25668 0.22917 064958 062460 050057 057748 055526 4.0% 053391 051337 0,20462 0.18270 0.16312 0.14554 0.13004 0.11611 0.10367 0,05882 0.03338 049363 0.47464 0.45639 037512 0.30832 13.0% 0.88496 0.78315 0.69305 061332 054276 0.48032 0.42506 037616 0.33288 0.29459 13.0% 0.26070 0.23071 0.20416 0.18068 0.15909 0.14150 0,12522 011081 0.09806 008678 004710 0.02557 4.25% 0.95923 0.92013 0.88262 0.84663 081212 0.77901 0.74725 0.71679 0.68757 065954 4.29% 063265 0.60686 5.0% 0.58468 0.55684 053032 050507 0.48102 045811 043630 0.47275 041552 0.45348 0.39573 043499 0.37689 0.35326 0.29530 0.28689 -0.23138 0.58212 055839 0.53562 051379 0.49284 16.0% 0.37719 0.76947 0.67497 0.59208 0.51937 0.45559 0.39964 0.35056 0.30751 0.26974 14.0% 0.23662 0.20756 5.0% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.18207 0.15971 0.14010 0.12289 0.10780 009456 0.08295 0.07276 0,03779 0.01963 0.67684 064461 0.51391 15.0% 0.86957 0.75614 0.65752 0.57175 0.49718 0.43233 0.37594 0.32690 028426 0.24718 15.0% 021494 0.18691 016253 014133 012289 010686 009293 0.00081 007027 006110 003038 001510 6.0% 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.66506 0.62741 0.59190 0.55839 6.0% 0.52679 0,49697 0.46884 044230 041727 0.39365 0.37136 0.35034 0.33051 0.31180 0.23300 0.17411 20.0% 0.83333 0.69444 0.57870 0.48225 0.40188 0.33490 0.27908 0.23257 0.19381 0.16151 20.0% 0.13459 011216 0.09346 007789 0.06491 0.05409 0.04507 003756 003130 0.02608 001048 000421 7.0% 0.93458 0.87344 0.81630 0.76290 - 071299 0.66634 062275 0.58201 054393 050835 7.0% 0.47509 044401 0.41496 0.38782 0.36245 033873 031657 0.29586 0.27651 0.25842 0.18425 013137 25.0% 0.80000 0.64000 051200 0.40960 032768 0.26214 0.20972 016777 013422 0.10737 25.0% 008590 006872 005498 004398 003518 002815 002252 001801 001441 0.01153 000378 000124
Required information. [The following information applies to the questions displayed below.] PowerTap Utilities is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 9 percent. The bonds mature in 9-years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 10 percent. (EV of $1. PV of $1. EVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Issue price
Transcribed Image Text:Required information. [The following information applies to the questions displayed below.] PowerTap Utilities is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 9 percent. The bonds mature in 9-years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 10 percent. (EV of $1. PV of $1. EVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Issue price
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