This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.
1 a. Proceeds from bonds = PV of principal + PV of interest Face Value of Bonds 1.800.000
Proceeds from bonds = PV of $1,800,000 + PV of interest X Coupon Rate 8%
Proceeds from bonds = $480.600,03 + $1.172.799,98 Annual Interest 144.000
Proceeds from bonds = $1.653.400,00 Divide by # of yrly pymts 2
Semi Annual Interest Amount 72.000 <<This is the cash paid in interest at each semi annual date
The present value of the principal is based on a single payment...
This is only a preview of the solution. Please use the purchase button to see the entire solution