Spiller Corp plans to issue 8 7year 410000 par value bonds p

Spiller Corp. plans to issue 8%, 7-year, $410,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated December 31, 2016, and are issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your \"Table value\" to 4 decimal places and final answers to nearest whole dollar) If the market rate of interest for the bonds is 6% on the date of issue, what will be the total cash proceeds from the bond issue? · Table Values are Based on n a Table ValueA Cash Flow Present (maturity) value Interest (annuity) Total cash proceeds Amount Present Value

Solution

Table values are based on: n= 14 i= 3% Cash flow Table amount Present value Value Present (maturity value) 0.6611 410,000 271051 Interest (annuity) 11.2961 16400 185256 Total cash proceeds 456307