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Final 4.docx - Let’s Analyze PROBLEM 24 (Adapted) Face...

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Let’s AnalyzePROBLEM 24 (Adapted)Face Value3,000,000PV of 1 at 10% for 1 period 0.9091Stated rate12%PV of 1 at 10% for 1 period 0.8263Effective rate10%PV of 1 at 10% for 1 period 0.7513Annual installment1,000,000Purchase Price of Bonds202020212022Principal1,000,0001,000,0001,000,000Interest (balance xnominal rate)360,000240,000120,000X PV of 11,360,0001,240,0001,120,000Present value0.90910.82630.75131,236,3761,024,736841,4563,102,568DateInterestreceivableInterestIncomeAmortizationPrincipalBalanceJan 1, 20203,102,568Dec. 31, 2020360,000310,256.80
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Debt, purchase price

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