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Unformatted text preview: value tables: Professor, I need some help understanding this. I know the key factors are: 10 periods, 300,000 * 8% (12000) each period, discount rate of 3% per period, but I’m not sure how to actually calculate the price of the bonds. I googled how to calculate this since I didn’t see the formula in the book (where is it?) and I found how to get the correct answer using Microsoft Excel using the formula: =PV(3%,10,12000,300000) which gives you the answer of ($325,590.61) which I think is the correct answer, but I don’t honestly know how to calculate that without MS Excel. So, for the sake of the quiz I guess that’s my answer ($325,590.61), but for the sake of understanding, will you explain how to calculate this without relying on Excel to make the calculation? Thanks, Randy 3...
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- Spring '09
- Accounting, market rate