What does P/A P/F mean on excel Can you tell me how to calculate on excel ?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...
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Question
Crawford Corporation issues $100,000 of 7% bonds on January 1, Year 1. The bonds have a six-year term and pay interest semiannually on June 30 and December 31 each year. Assuming a market interest rate of 6%, interest expense associated with the December 31, Year 1 payment is:
Issue price of bond = Semiannual coupon payment x P/A(3%,12) + Face value x P/F(3%,12)
= ($3,500 x 9.954) + ($100,000 x 0.70138)
= $104,977
What does P/A P/F mean on excel Can you tell me how to calculate on excel ?
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