Question

Concord Railroad Co. is about to issue $330,000 of 8-year bonds paying an 9% interest rate, with interest payable semiannually. The discount rate for such securities is 8%.

Click below to view the factor tables.
Table 1. Future Value of 1
Table 2. Future Value of an Annuity of 1
Table 3. Present Value of 1
Table 4. Present Value of an Annuity of 1

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

How much can Concord expect to receive for the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,525.)

Concord can expect to receive

$

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.