ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 42

Present value of 1 for 20 periods at 6%

.312

Present value of annuity for 10 periods at 10%
6.145

Present value of annuity for 10 periods at 12%
5.650

Present value of annuity for 20 periods at 5%
12.462

Present value of annuity for 20 periods at 6%
11.470

3)

Calculate the issue price of the bonds.

Issue price of bond

4) Without prejudice to your solution in part (a), assume that
the issue price was $2,652,000. Prepare the amortization table