(Computation of Bond Liability)Messier Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,000,000 of 11% term corporate bonds on March 1, 2010, due on March 1, 2025, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%. As the controller of the company, determine the selling price of the bonds. (Round answer to zero decimal places, e.g. 12,520. Hint: Use tables in text.)Selling price of bonds$3,230,594E6-13Formula for the interest payments: PV - OA =R (PVF - OAn,i)PV - OA =$165,000 (PVF - OA30, 5%)..., How $165000 came from??
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