On January 1 2012 PVP Co. issued 6 % bonds with a face value of $1000000 when the market interest rate was 10 %. The bonds are due in 10
years and interest is payable semiannually every June 30 and December 31. Using the appropriate factors below calculate the selling price of the bond (round
your final answer).
Present value of an ordinary annuity of $1
At 3% 10 periods=8.5302
At 5% 20 periods=12.4622
At 6% 10 periods=7.3601
At 10% 10 periods=6.1446
Present value of $1
At 3% 10 periods=0.7441
At 5% 20 periods=0.3769
At 6% 10 periods=0.5584
At 10% 10 periods=0.3855
Use the answer sheet provided.