Brief Exercise 14-5 (Part Level Submission)
On May 1, 2017, Ayayai Corporation, a publicly listed corporation, issued $222,800 of five-year, 8% bonds, with
interest payable semi-annually on November 1 and May 1. The bonds were issued to yield a market interest rate of
6%. Ayayai uses the effective interest method.
Click here to view the factor table.
(a)
Calculate the present value (issue price) of the bonds on May 1 using time value of money tables, a financial
calculator, and computer spreadsheet functions. (For calculation purposes, use 5 decimal places as displayed
in the factor table provided and round final answer to 0 decimal places, e.g. 1,251,24.)
Present value of the bonds
$
SHOW LIST OF ACCOUNTS
By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set
by your instructor.