Interest rates determine the present value of future amounts. $($Round to the nearest dollar.$)$

$($Click the icon to view Present Value of $$1$ table.$)$

$($Click the icon to view Present Value of Ordinary Annuity of $$1$ table.$)$

$($Click the icon to view Future Value of $$1$ table.$)$

$($Click the icon to view Future Value of Ordinary Annuity of $$1$ table.$)$

Read the requirements.

Requirement $1.$ Determine the present value of six$-$year bonds payable with face value of $$88,000$ and stated interest rate of $10\%,$ paid semiannually. The market rate of interest is $10\%$ at issuance. $($Round intermediary calculations and final answer to the nearest whole dollar.$).$

Present Value

When market rate of interest is $10\%$ annually $$88,000$

Requirement $2.$ Same bonds payable as in requirement $1,$ but the market interest rate is $12\%.($Round intermediary calculations and final answer to the nearest whole dollar.$)$

Present Value

When market rate of interest is $12\%$ annually