ACC 510 Wk 3 Bonds_BRYSON_VICTOR

ACC 510 Wk 3 Bonds_BRYSON_VICTOR - Face value 200,000 x...

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Victor Bryson ACC 510 WK 3 Bonds March 27, 2010 Wk 3 Bonds Banzai Corporation is issuing $200,000 of 8%, 5 year bonds when potential bond investors want a return of 10%. Interest is payable semiannually. Compute the market price (present value) of the bonds.
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Unformatted text preview: Face value 200,000 x .61391 = 122,782.70 10,000 x = 7.72173 = 77, 217.30 Present value of bonds $200, 000 200,000 x .67556 = 135, 112 10,000 x 8.11090 = 81,109 Present Value of bonds 216, 221...
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This note was uploaded on 06/06/2010 for the course MBA ACC510 taught by Professor Abc during the Spring '10 term at Salem Intl..

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