What is the present value of the bond face amount

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Reference no: EM132506181

JACKSON INC. issued $35Million dollars worth of bonds at 6%. The bonds mature in 6 years and interest is paid semi-annually on June 30 and December 31. The market rate of interest is 4%.

Requirement: Using the information above answer the following questions.

Question 1. Will the bonds be sold at face, discount or premium ?

Question 2. What is the present value factor for bond face amount?

Question 3. What is the present value factor for the interest payment

Question 4. What is the present value of the bond face amount?

Question 5. What is the present value of the interest payments ?

Question 6. How do we determine if a bond will be sold at a premium, discount or face amount?

Reference no: EM132506181

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