In: Accounting
Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $58,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $61,772,146. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Compute the price of $61,772,146 received for the bonds by using Table 1, Table 2, Table 3 and Table 4. Round to the nearest dollar. Your total may vary slightly from the price given due to rounding differences.
Present value of the face amount | $ |
Present value of the semiannual interest payments | |
Price received for the bonds |
please explain and answer this question