a bond is repaid in equal principal payments annually for eight years plus annual interest of 4% per annum on the outstanding balance. This bond payment schedule fulfills the following variable annuity. Calculate the bond payable at the beginning of the period and the fair value of the bond if the discount rate is 10% per year. ANSWER MADE IN MICROSOFT EXCEL FORM 

Year 00 OWNE Cash Flow (US$) 1 16,500 2 16,000 3 15,500 4 15,000 5 14,500 6 14,000 13,500 8 13,000