Holiday Brands issued $30.8 million of 6.4%, 27year bonds for $27.5 million. What is the amount of interest that Holiday will pay semiannually to bondholders?

Holiday Brands issued $30.8 million of 6.4%, 27year

bonds for $27.5 million.

What is the amount of interest that Holiday will pay semiannually to bondholders? (Enter your answer in

dollars not in millions. Omit the "$" sign in your response.)

Interest paid $ 985,600

Explanation:

$30,800,000 × 6.4% × 6/12 = $985,600

A company issued 8%, 10year

bonds with a face amount of $83 million. The market yield for bonds of

similar risk and maturity is 9%. Interest is paid semiannually.

Use (Table 2) and (Table 4)

At what price did the bonds sell? (Enter your answer in dollars not in millions. Round "PV Factor" to

5 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your

response.)

Price of the bonds $ 77,601,481 ± 0.01%

Explanation:

Interest $ 3,320,000 ¥ × 13.00794* = $ 43,186,361

Principal $ 83,000,000 × .41464** = 34,415,120

Present value (price) of the bonds $ 77,601,481

¥ [8 ÷ 2] % × $83,000,000

* present value of an ordinary annuity of $1: n = 20, i = 4.5%. (Table 4)

** present value of $1: n = 20, i = 4.5%. (Table 2)