On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $360 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1, PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $360 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1, PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Exercise 5-21 (Algo) Price of a bond [LO5-9, 5-10]
On September 30, 2024, the Techno Corporation issued 8% stated rate bonds
with a face amount of $360 million. The bonds mature on September 30, 2044
(20 years). The market rate of interest for similar bonds was 10%. Interest is paid
semiannually on March 31 and September 30.
Required:
Determine the price of the bonds on September 30, 2024.
Note: Use tables, Excel, or a financial calculator. Round your final answers to
nearest whole dollar amount, not in millions. (FV of $1, PV of $1, FVA of $1, PVA
of $1, FVAD of $1 and PVAD of $1)
Time values are based on:
n =
i=
Cash Flow
Interest
Principal
Price of bonds
$
Amount
40
5%
9,600,000
$
Present Value
31,195,340](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe485a7df-6286-4e84-b1d5-277bac7f51c0%2F31734034-0957-4f50-ae6b-0d965b79c182%2Ffs97bjb_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 5-21 (Algo) Price of a bond [LO5-9, 5-10]
On September 30, 2024, the Techno Corporation issued 8% stated rate bonds
with a face amount of $360 million. The bonds mature on September 30, 2044
(20 years). The market rate of interest for similar bonds was 10%. Interest is paid
semiannually on March 31 and September 30.
Required:
Determine the price of the bonds on September 30, 2024.
Note: Use tables, Excel, or a financial calculator. Round your final answers to
nearest whole dollar amount, not in millions. (FV of $1, PV of $1, FVA of $1, PVA
of $1, FVAD of $1 and PVAD of $1)
Time values are based on:
n =
i=
Cash Flow
Interest
Principal
Price of bonds
$
Amount
40
5%
9,600,000
$
Present Value
31,195,340
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