t Value for the question listed below, while the issue price is correct, I need help understanding how the varying calculations were made. For instance, 350,000 x 0.9434=330190; however it shows 350,000 x 0.9434 = 330189. Additionally, other calculations are similar, even though the answer is correct. January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2028. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) I appreciate your assistance, than
Present Value for the question listed below, while the issue price is correct, I need help understanding how the varying calculations were made. For instance, 350,000 x 0.9434=330190; however it shows 350,000 x 0.9434 = 330189. Additionally, other calculations are similar, even though the answer is correct. January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2028. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) I appreciate your assistance, thank you.
The price of bond is sum of present value of coupon payments and sum of present value of par value of the bond.
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