MGMT 351

# MGMT 351 - Proceeds =(20,000(PVa n=10 i=3.9(500,000(PVsa...

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\$500,000 5-year DISCOUNT bond; 4%/6 months face interest rate; 4.15% market interest rate Proceeds = (20,000)(PVa, n=10, i=4.15)+(400,000)(PVsa, n=10, i=4.15%) = 493,962.00 Period Cash Flow at borrowing 493,962.00 6 months ### 20,000.00 499.42 494,461.42 12 months ### 20,000.00 520.15 494,981.57 18 months ### 20,000.00 541.74 495,523.31 24 months ### 20,000.00 564.22 496,087.52 30 months ### 20,000.00 587.63 496,675.16 36 months ### 20,000.00 612.02 497,287.18 42 months ### 20,000.00 637.42 497,924.59 48 months ### 20,000.00 663.87 498,588.46 54 months ### 20,000.00 691.42 499,279.89 60 months ### ### ### 0.00 Interest Expense Change in Carrying Anount Carrying Amount

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\$500,000, 5-year PREMIUM bond; 4%/6 months face interest rate; 3.9% market interest rate
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Unformatted text preview: Proceeds = (20,000)(PVa, n=10, i=3.9%)+(500,000)(PVsa, n=10, i=3.9%) = 504,075.71 Period Cash Flow at borrowing 504,075.71 6 months ### 20,000.00 (341.05) 503,734.66 12 months ### 20,000.00 (354.35) 503,380.31 18 months ### 20,000.00 (368.17) 503,012.15 24 months ### 20,000.00 (382.53) 502,629.62 30 months ### 20,000.00 (397.44) 502,232.18 36 months ### 20,000.00 (412.95) 501,819.23 42 months ### 20,000.00 (429.05) 501,390.18 48 months ### 20,000.00 (445.78) 500,944.40 54 months ### 20,000.00 (463.17) 500,481.23 60 months ### ### ### (0.00) Interest Expense Change in Carrying Anount Carrying Amount...
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MGMT 351 - Proceeds =(20,000(PVa n=10 i=3.9(500,000(PVsa...

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