Answer:
$1,302.82
Explanation:
The computation of the price that need to sell the bond is shown below:
Here we calculate the present value for the same
Given that
RATE = 5%
NPER = 30 - 1 = 29
PMT = $1,000 × 7% = $70
FV = $1,000
The formula is shown below:
=-PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $1,302.82
Answer:
$18,287.32
Explanation:
We use the PMT formula i.e shown in the attachment below:
Data provided in the question
Present value = $0
Future value = $80,000
Rate of interest = 6%
Time period = 4 years
The formula is shown below:
= NPER(Rate;PMT;PV;-FV;type)
The future value come in negative
So, after solving this, the annual payments should be made is $18,287.32
