7. What is the present value of $120,000 received 10 years from now if the annual interest is 10% compounded semi-annually? a. 46,265 b. 45,227 c. 46,213 d. 45,210 8. Abbington Inc. issues bonds with fal value $700,000, coupon rate 9% (paid semi- annually), which mature in 10 years. If the market interest rate is 8% per year compounded semi-annually, the issue price would be: a. 747,566 b. 656,382 c. 747,511 d. 656,377 9. On January 1 of the current year, CCH Corporation entered into the following lease contract. Based on the fact, CCH Corporation classifies the lease as an operating lease. Leased asset: Office Space Annual lease payment: $115,487 due at each year-end Lease term: 5 years Upfront fees: $10, 000 paid in cash Assuming that the company reports under the new lease accounting standard and that the discount rate is 5%, what is the amount of lease liability that CCH will add to its balance sheet at the inception of the lease? 499,998 a. b. 509,998 c. 498,998 d. 519,998 10. Based on the same information in Question 9, what is the amount of lease asset that CCH will add to its balance sheet at the inception of the lease? a. 499,998 b. 509,998 c. 498,998 d. 519,998