On January 1, 2017, Swifty Corporation issued eight-year bonds with a face value of $5550000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are:
|
Present value of 1 for 8 periods at 6% |
|
0.627 |
|
Present value of 1 for 8 periods at 8% |
|
0.540 |
|
Present value of 1 for 16 periods at 3% |
|
0.623 |
|
Present value of 1 for 16 periods at 4% |
|
0.534 |
|
Present value of annuity for 8 periods at 6% |
|
6.210 |
|
Present value of annuity for 8 periods at 8% |
|
5.747 |
|
Present value of annuity for 16 periods at 3% |
|
12.561 |
|
Present value of annuity for 16 periods at 4% |
|
11.652 |
The present value of the interest is