eBook Print tem Present Value of Bonds Payable; Discount Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder Co. issued $25,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9% Determine the present value of the bonds payable, using the present value tables in Exhibit 8 and Exhibit 10. Round to the nearest dollar. Present Value of $1 at Compound Interest EXHIBIT 8 Periods 4% 41% 5% 1 0.96154 0.95694 0.95238 2 0.92456 0.91573 0.90703 51% 0.94787 0.89845 3 0.88900 0.87630 0.86384 6% 62% 0.94340 0.93897 0.89000 0.88166 0.85161 0.83962 7% 0.93458 10% 0.90909 0.87344 0.82645 11% 0.90090 0.81162 0.79719 12% 13% 0.89286 0.88496 0.78315 0.82785 0.81630 0.75131 0.73119 0.71178 0.69305 4 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.68301 0.65873 0.63552 0.61332 5 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.62092 0.59345 0.56743 0.54276 6 0.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 0.56447 0.53464 0.50663 0.48032 7 0.75992 0.73483 0.71068 8 0.73069 0.70319 0.67684 0.65160 9 0.70259 0.67290 0.64461 0.61763 10 0.67556 0.64393 0.61391 0.58543 0.68744 0.66506 0.64351 0.62741 0.60423 0.58201 0.59190 0.56735 0.54393 0.55839 0.53273 0.50835 0.62275 0.51316 0.48166 0.45235 0.42506 0.46651 043393 042410 0.39092 0.38554 035218 0.32197 0.29459 0.40388 0.37616 0.36061 0.33288 EXHIBIT 10 Present Value of an Annuity of $1 at Compound Interest Periods 4% 41% 0.96154 0.95694 2 1.88609 1.87267 13 2.77509 2.74896 4 3.62990 3.58753 3.54595 5 445182 4.38998 4.32948 6 5.24214 5.15787 5.07569 7 6.00205 5.89270 8 6.73274 6.59589 9 7.43533 7.26879 10 8.11090 7.91272 7.72173 5% 51% 6% 6%% 7% 10% 0.95238 0.94787 094340 0.93897 0.93458 090909 0.90090 1.85941 1.84632 1.83339 1.82063 1.80802 1.73554 1.71252 2.72325 2.69793 267301 2.64848 2.62432 2.48685 244371 3.50515 3.46511 342580 3.38721 3.16987 3.10245 4.27028 421236 4.15568 4.10020 3.79079 3.69590 4.99553 4.91732 4.84101 4.76654 4.35526 4.23054 4.11141 5.78637 5.68297 5.58238 548452 5.38929 4.86842 471220 6.46321 6.33457 6.20979 6.08875 5.97130 5.33493 5.14612 7.10782 6.95220 6.80169 665610 651523 575902 5.53705 532825 7.53763 7.36009 7.18883 7.02358 6.14457 588923 565022 11% 12% 13% 089286 0.88496 1.69005 240183 2.36115 3.03735 2.97447 360478 3.51723 3.99755 1.66810 456376 442261 4.96764 4.79677 5.13166 5.42624