On January 1, 2012, Hutton Co. issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually onJune 30 and December 31. The bonds were sold to yield 8%

On January 1, 2012, Hutton Co. issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually onJune 30 and December 31. The bonds were sold to yield 8%

On January 1, 2012, Hutton Co. issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually onJune 30 and December 31. The bonds were sold to yield 8%. Table values are:

Present value of 1 for 8 periods at 6% .627

Present value of 1 for 8 periods at 8% .540

Present value of 1 for 16 periods at 3% .623

Present value of 1 for 16 periods at 4% .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

a) The present value of the principal is.?

b) The present value of the interest is?

c) The issue price of the bonds is?



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