Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $37,000,000 of three-year, 11% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $
Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $37,000,000 of three-year, 11% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.
$
Issue price of the bonds = Present value of principal + Present value of interest payments
where,
Present value of principal = Face value of the bonds x Present value factor at market rate
Present value of interest payments = Interest payment x Present value factor at market rate
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