Question 25 24 Determine the price of a 200000 bond issue un

Question 25 24. Determine the price of a $200,000 bond issue under each of the folwing idependent Maturity Interest Paid annually 1. 10 years 2. 10 years semiannually 3. 20 years semiannually Stated Rate 10% 10% 12% Effective Rate 12% 12% 12% Paragraph

Solution

S.no

Particulars

Amount

Pv factor

$

1

Interest

$20,000

5.65022

$1,13,004.40

Principal

$2,00,000

0.32197

$64,394.00

$1,77,398.40

(n=10, I =12%)

2

Interest

$10,000

11.46992

$1,14,699.20

Principal

$2,00,000

0.3118

$62,360.00

$1,77,059.20

(n=20, i=6%)

3

Interest

$12,000

15.0463

$1,80,555.60

Principal

$2,00,000

0.09722

$19,444.00

(n=40, i=6%)

$1,99,999.60

As per chegg guidelines when there one or more independent questions only first independent question will be answered.

S.no	Particulars	Amount	Pv factor	$
1	Interest	$20,000	5.65022	$1,13,004.40
	Principal	$2,00,000	0.32197	$64,394.00
				$1,77,398.40
	(n=10, I =12%)
2	Interest	$10,000	11.46992	$1,14,699.20
	Principal	$2,00,000	0.3118	$62,360.00
				$1,77,059.20
	(n=20, i=6%)
3	Interest	$12,000	15.0463	$1,80,555.60
	Principal	$2,00,000	0.09722	$19,444.00
	(n=40, i=6%)			$1,99,999.60