Follow the questions and requirements, and answer the question.

Requirements 1. Determine the present value of five-year bonds payable with face value of $87,000 and stated interest rate of 10%, paid semiannually. The market rate of interest is 10% at issuance. 2. Same bonds payable as in Requirement 1 , but the market interest rate is 16%. 3. Same bonds payable as in Requirement 1 , but the market interest rate is 8%. Present Value When market rate of interest is 12% annually \$ 88,018 Present Value When market rate of interest is 14% annually $78,640 Present Value When market rate of interest is 10% annually $98,975