On June 30, 2013, Singleton Computers issued 6% stated rate bonds with a face amount...
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Accounting
On June 30, 2013, Singleton Computers issued 6% stated rate bonds with a face amount of $200 million. the bonds matured on June 30, 2033 (15 years). The Market rate of interest for similar bond issues was 5% (2.5% semi-annual rate). Interest paid semiannually (3%) on June 30 and December 31, beginning on December 31, 2018.
Required:
1. Determine the price of the the bonds on June 20, 2018.
2.Calculate the interest expense Singleton reports in 2018 for these bonds.
My question is, that I cannot figure out how to calculate the Present Value of Ordinary Annuity of $1.
I understand I need to use n=30 and I=2.5% But I don't understand how to apply them to a formula to get the answer of Present Value of Ordinary Annuity of $1 so that I can continue.
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