On December 31, 2021, Interlink Communications issued 8% stated rate bonds with a face amount of $109 million. The bonds mature n December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1. FVA of $1, PVA of $1. VAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) etermine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 9%. (Round our final answers to nearest whole dollar amount.)

n= 30 years i= 9% Cashflow Amount Present value factor@9% Present value Interest…

Answered: On December 31, 2021, Interlink Communications issued 8% stated rate bonds with a face amount of $109 million. The bonds mature n December 31, 2051. Interest is…

FINANCIAL ACCOUNTING

10th Edition

ISBN: 9781259964947

Author: Libby

Publisher: MCG

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Question

On December 31, 2021, Interlink Communications issued 8% stated rate bonds with a face amount of $109 million. The bonds mature
on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1,
FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 9%. (Round
your final answers to nearest whole dollar amount.)
Table values are based on:
n =
Cash Flow
Amount
Present Value
Interest
Principal
Price of bonds

Expert Solution

Step 1

n=	30 years
i=	9%

Cashflow	Amount	Present value factor@9%	Present value
Interest	8.72$ (109$ million*8%)	10.2737	$89.59
Principal	$109 million	0.0754	$8.22
		Price of bonds	$97.80

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