Question
On December 31, 2018, when the market interest rate is 14%, Hayden Corporation issues $ 300 comma 000 of 6%, 4-year bonds payable. The bonds
On December 31, 2018, when the market interest rate is 14%, Hayden Corporation issues $ 300 comma 000 of 6%, 4-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. LOADING...(Click the icon to view Present Value of $1 table.) LOADING...(Click the icon to view Present Value of Ordinary Annuity of $1 table.) LOADING...(Click the icon to view Future Value of $1 table.) LOADING...(Click the icon to view Future Value of Ordinary Annuity of $1 table.) Start by calculating the present value of the principal. (Enter factor amounts to three decimal places, X.XXX.) Value x Factor = PV of principal x = Now calculate the present value of the stated interest. (Enter factor amounts to three decimal places, X.XXX.) ( Value x Semiannual interest rate ) x Factor = PV of stated interest ( x % ) x = Finally, calculate the present value of bonds payable. PV of principal + PV of stated interest = PV of bonds payable + =
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