PowerTap Utilities is planning to issue bonds with a face value of $1,700,000 and a...
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PowerTap Utilities is planning to issue bonds with a face value of $1,700,000 and a coupon rate of 8 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 10 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
3.) What amount of cash should be paid to investors June 30 and December 31 of this year?
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