years. Imerest is at 11%. Assume cash flows occur at the end of the year. (FV of $1, PV of $1, FVA DI SI, P
of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
Calculate the total present value of the cash flows. (Do not round intermediate calculations. Round your fi
answer to nearest, whole dollar.)
3. The note about debt included in the financial statements of Healdsburg Company for the year ended Decem
31, 2017 disclosed the following:
7.75% notes due 2018
8.25% notes due 2023
8.50% notes due 2032
8.13% notes due 2040
7.05% notes due 2019
$ 210,400,000
$ 354,200,000
$ 235,000,000
$ 210,000,000
$ 26,000,000
The above table summarizes the long-term debt of the Company at December 31, 2017. All of the notes were
originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are
the remaining balances at this date.
Assuming that the notes pay interest annually and mature on December 31 of the respective years. (FV of $1, PV
of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
Required:
2. Teted present value of Cash flows - 131493
Suppose that Healdsburg renegotiates the 8.50% notes on December 31, 2023, when the going interest rate is
6%. Healdsburg agrees to make 12 equal annual installments, commencing on December 31, 2024, rather than
pay the annual interest payments and the $235 million in a single amount at maturity. What would the annual
payments be? (Enter your answer in whole dollars. Round your final answer to nearest whole dollar.)
$502.000 bond issue under each of the following independent assumptions: (FV of
