Robinson Corp. issued 10%, 8-year, $2,500,000 PV bonds that pay
interest annually. The bonds are date 1/1/2017 and are issued on
that date. The discount rate of interest for such bonds on 1/1/2017
is 8%. What cash proceeds did Robinson Corp receive from issuance
of the bonds?
(PV of 1 is
0.54027) (FV
of 1 is 1.85093)
(PV annuity due of 1 is
6.20637) (PV
ordinary annuity of 1 is 5.74664)
a.
$2,638,370
b.
$2,251,618
c.
$2,500,000
d.
$2,787,332