Question

Cullumber Company is about to issue $336,000 of 9-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 10%.

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

How much can Cullumber expect to receive for the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,575.)

Cullumber can expect to receive

$enter a dollar amount to be recieved for the sale of bonds rounded to 0 decimal places

Crane Company issued 6%, 7-year, $260,000 par value bonds that pay interest annually on April 1. The bonds are dated April 1, 2022, and are issued on that date. The discount rate of interest for such bonds on April 1, 2022, is 8%.

Click here to view the factor table.

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

What cash proceeds did Crane receive from issuance of the bonds? (Round answer to 0 decimal places, e.g. 125.)

Cash proceeds from issuance of the bonds

$enter cash proceeds in dollars rounded to 0 decimal places

Answer 1