1. On January 1, 2017, Ayayai Corporation purchased 345 of the $1,000 face value, 9%,...
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1. On January 1, 2017, Ayayai Corporation purchased 345 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2027, and pay interest annually beginning January 1, 2018. Ayayai purchased the bonds to yield 11%. How much did Ayayai pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Ayayai must pay for the bonds:
2. Ayayai Corporation wants to withdraw $117,450 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Required initial investment:
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