Blossom Corporation is about to issue $1,000,000 of 8-year bonds that pay a 4% annual...
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Accounting
Blossom Corporation is about to issue $1,000,000 of 8-year bonds that pay a 4% annual interest rate, with interest payable semi-annually. The market interest rate is 5%. Assuming all bonds are issued, how much can Blossom expect to receive for the sale of these bonds?
Of the variables listed in the dropdown, choose the variable being calculated?
Fill in the remaining variables in the table that follows. (Round rate to 1 decimal place, e.g. 25.5%.)
Variable
Financial Calculatoror Tables
Excel
Present value
PV
PV
?
Future value
FV
FV
$
Interest rate
I
Rate
%
Amount of annuity payment
PMT
PMT
$
Number of periods
N
Nper
Calculate the proceeds from the sale of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.)
Proceeds from the sale of the bonds
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