Question
Interest rates determine the present value of future amounts. (Round to the nearest dollar.) (Click the icon to view Present Value of $1 table.)
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 Future Value of $1 table.) Read the requirements. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Requirement 1. Determine the present value of 10-year bonds payable with face value of $90,000 and stated interest rate of 10%, paid semiannually. The market rate of interest is 10% at issuance. answer to the nearest whole dollar.) Present Value $ 90,000 When market rate of interest is 10% annually 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.) When market rate of interest is 12% annually Present Value $ 79,695 Requirement 3. Same bonds payable as in requirement 1, but the market interest rate is 8%. (Round intermediary calculations and final answer to the nearest whole dollar.) Present Value When market rate of interest is 8% annually
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