1. Reed Corp. sells $700,000 of bonds to private investors. Thebonds are due in...

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Accounting

1. Reed Corp. sells $700,000 of bonds to private investors. Thebonds are due in five years, have a 4% coupon rate and interest ispaid semiannually. The bonds were sold to yield 6%. What proceedsdoes Reed receive from the investors?
2. Sykora Corp. sells $450,000 of bonds to private investors.The bonds are due in 5 years, have a 6% coupon rate and interest ispaid semiannually. Sykora received $490,222 for the bonds atissuance. The effective rate on these bonds is:
3. Heller Company issues $950,000 of 10% bonds that pay interestsemiannually and mature in 10 years. What is the bonds’ issue priceassuming that the bonds’ market interest rate is 14% per year?

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Req 1 Maturity value of bonds 700000 Cash Semi annual interest 7000004612 14000 Annuity PVF at 3 for 10 periods 85302 PVF at 3 for 10th perriod 074409 See Answer

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In: Accounting1. Reed Corp. sells $700,000 of bonds to private investors. Thebonds are due in five...1. Reed Corp. sells $700,000 of bonds to private investors. Thebonds are due in five years, have a 4% coupon rate and interest ispaid semiannually. The bonds were sold to yield 6%. What proceedsdoes Reed receive from the investors?2. Sykora Corp. sells $450,000 of bonds to private investors.The bonds are due in 5 years, have a 6% coupon rate and interest ispaid semiannually. Sykora received $490,222 for the bonds atissuance. The effective rate on these bonds is:3. Heller Company issues $950,000 of 10% bonds that pay interestsemiannually and mature in 10 years. What is the bonds’ issue priceassuming that the bonds’ market interest rate is 14% per year?