Present Value Rate Time Compounding Frequency Table Factor
Future Value

a. $5,000 12% 2 yrs Annual

b. $5,000 12% 2 yrs Semiannual

c. $5,000 12% 2 yrs. Quarterly

d. $5,000 12% 2 yrs Monthly

Please show Calculations.

2. For each
of the following independent situations, determine (1) whether the bonds sold
at face value, a premium, or at a discount, and (2) whether interest expense
recognized each year for the bonds was less than, equal to, or greater than the
amount of interest paid on the bonds.

a. Bonds
with a stated rate of 10% were sold to yield an effective rate of 8%.

b. Bonds
with a stated rate of 7% were sold to yield an effective rate of 7%.

c. Bonds
with a stated rate of 6% were sold to yield an effective rate of 11%.

Please show calculations.

3. Rocky
Road Company sold $5 million of six-year sox percent debentures (bonds) on
January 1, 2009. The bonds sold to yield an effective rate of 7%. Interest is
paid annually on December 31st.

a. What is
the price of the bonds?

b. What
would be the price of the bonds if they were sold to yield a real rate of 5%?