In: Accounting
Complete the below table to calculate the price of a $1.2
million bond issue under each of the following independent
assumptions (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.):
1. Maturity 14 years, interest paid annually,
stated rate 8%, effective (market) rate 10%
2. Maturity 10 years, interest paid semiannually,
stated rate 8%, effective (market) rate 10%
3. Maturity 5 years, interest paid semiannually,
stated rate 10%, effective (market) rate 8%
4. Maturity 10 years, interest paid semiannually,
stated rate 10%, effective (market) rate 8%
5. Maturity 10 years, interest paid semiannually,
stated rate 10%, effective (market) rate 10%