12A. On December 31, 2018, when the market interest rate is 10%, Gilbert Corporation issues $200,000 of 6%, 4-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. E(Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Start by calculating the present value of the principal. (Enter factor amounts to three decimal places, X.XXX.) PV of principal Value Factor $ 200,000 0.677 135,400 Now calculate the present value of the stated interest. (Enter factor amounts to three decimal places, X.XXX.) Semiannual interest rate x Value Factor PV of stated interest 200000 3 % ) x =