12A. On December 31, 2018, when the market interest rate is 16%, Arnold Corporation issues $ 160000 of 12%, 8-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance.

Start by calculating the present value of the principal. (Enter factor amounts to three decimal places, X.XXX.) Value x Factor = PV of principal x = Now calculate the present value of the stated interest. (Enter factor amounts to three decimal places, X.XXX.) ( Value x Semiannual interest rate ) x Factor = PV of stated interest ( x % ) x = Finally, calculate the present value of bonds payable. PV of principal + PV of stated interest = PV of bonds payable + =