Answer:
At a premium
Explanation:
As in the question it is given that
The issued price is $207,020
And, the face value is $200,000
So as we can see that
The issued price i.e. $207,020 is more than the face value i.e. $200,000
So the bond is issued at a premium also the difference of $7,020 would be transfer to the premium account
Answer:
The withdraw amount is "11,227.42".
Explanation:
The given values are:
In stock account,
PMT = $820
Interest rate =
N = 300
PV = 0
In Bond account,
PMT = $420
Interest rate =
N = 300
PV = 0
Now,
By using the FV (Future value) function, the value in Stock account will be:
=
=
By using the FV (Future value) function, the value in Stock account will be:
=
=
After 25 years,
The value throughout the account, will be:
=
=
By using the PMT function, we can find the with drawling amount. The amount will be:
=
=