A $700, 000, 20-year, 14% bond issue was sold to yield 12%.Interest was payable annually.Actuarial information for 20 periods follows:
$\begin{array}{lll}& 12\%& 14\%\\ \text{ Future value of }1& 9.646& 13.743\\ \text{ Present value of }1& 0.104& 0.073\\ \text{ Future value of annuity of }1& 72.052& 91.02\\ \text{ Present value of annuity of }1& 7.469& 6.623\end{array}$
Required:
Compute the amount of cash that was received when the bonds were issued.

Actuarial Information

Actuarial information involves data and statistics used by actuaries to assess risks and calculate insurance premiums, pension contributions, and other financial products.

Future Value

The estimated amount of money an investment is projected to grow to, based on a specified rate of interest or return over a set period.

Present Value

The current estimation of a future quantity of money or sequences of cash inflows, figured with an explicit rate of return.