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A company issued 8%, 20-year bonds with a face amount of $72 million. The market yield for bonds of similar risk and maturity is 9%. Interest is paid semiannually. At what price did the bonds sell? Use the table PV of1, FV of 1, FVA of 1, PVA of 1, FVAD of 1, PVAD of 1.
Table values are based on:
N= 40
I=4.5%
Cash Flow Amount Present Value
Interest ? ?
Principal 72,000,000 12,378,960
Price of Bonds: ?

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