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On January 1 of this year, Nowell Company issued bonds with a face value of $140,000 and a coupon rate of 7.5 percent. The bonds mature in ten years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 7.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

What amount of cash is owed to investors on June 30 and December 31 of this year?

On January 1 of this year Nowell Company issued bonds with a face value of 140000 and a coupon rate of 75 percent The bonds mature in ten years and pay interest class=

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Based on the face value of the bonds and the coupon rate, the amount owed to investors by Nowell Company is:

  • June 30 = $5,250
  • December 31 = $5,250

How much is owed to investors?

This can be found as:

= (Coupon rate x Face value) / 2 semi annual periods

Solving gives:

= (7.5% x 140,000) / 2

= $5,250

Find out more on coupon payments at https://brainly.com/question/26657407

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