Interest rates determine the present value of future amounts (Round to the nearest dollar ) Requirements 1 Determine the present value of 10 year bonds payable with face value of $86,000 and stated interest rate of 14 , paid semiannually The market rate of interest is 14 at issuance 2 Same bonds pa...

Requirement 1 Present value 86000 because the stated rate of interest equals the market ra ...

Interest rates determine the present value of future amounts. (Round to the nearest dollar.) Requirements 1. Determine

Question:

Interest rates determine the present value of future amounts. (Round to the nearest dollar.)
Requirements
1. Determine the present value of 10-year bonds payable with of $86,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance.
2. Same bonds payable as in Requirement 1, but the market interest rate is 16%.
3. Same bonds payable as in Requirement 1, but the market interest rate is 12%.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...