5. Opal Corporation is required to pay the pension cost of one of its unionized employees. According to the terms of the union contract, the employee will retire in 4 years and receive $45,000 at the end of the 14 consecutive years following retirement. Interest is compounded annually.

The pension obligation that Opal has incurred today if the discount rate is 9% is?

6. Determine the bond issues proceeds for each of the following bonds payable. All proceeds are issued on January 1,2019.

A. Silly Corporation issued bonds in the amount of $60,000 that will be paid in 12 years. Interest of $8,400 is payable annually each December 31 with the first interest payment at the end of the year on December 31,2019. If the market rate of interest is 12% is the amount of the bond issue proceeds?

B. Master Corporation issued bonds in the amount of $450,000 that will be paid in 9 years. Interest of $9,000 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the period on June 30,2019. If the market rate of interest is 10%, what is the amount of the bond issue proceeds?