E6.13 (LO 5) (Computati Recently, the vice presi meet the increasing dema of directors has decided to bonds on March 1, 2020 the time of issuance, the Instructions As the controller of the com station of Bond Liability) Hincapie Inc, manufactures cycling equipment. president of operations of the company has requested construction of a new plant to ng demand for the company's bikes. After a careful evaluation of the request, the board ided to raise funds for the new plant by issuing $2,000,000 of 11% term corporate 2020. due on March 1, 2035, with interest payable each March 1 and September 1. AL uance, the market interest rate for similar financial instruments is 10% controller of the company, determine the selling price of the bonds. E6.14 (LO 5) (Computation of Pension Liability) Nerwin, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2020. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obli- gation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement 15 years Expected life duration after retirement 10 years Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. $700,000 per year The interest rate to be used is 8%. Instructions On the basis of the information above, determine the present value of the pension obligation (liability)