Show how this is done, give formula Determine the bond issue proceeds for...
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Show how this is done, give formula
Determine the bond issue proceeds for each of the bonds payable below. All bonds are issued on January 1, 2016. a. Brennon Corporation issued bonds in the amount of $1, 240,000 that will be paid in 7 years. Interest of $24, 800 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June 30, 2016. If the market rate of interest is 10%, what is the amount of the bond issue proceeds? The bond issue proceeds are $ 871, 770.56. b. Tilly Corporation issued bonds in the amount of S4, 200,000 that will be paid in eight years. Interest of $42,000 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the period on June 30, 2016. If the market rate of interest is 4%, what is the amount of the bond issue proceeds? The bond issue proceeds are $ 3, 629, 736.21
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