Pinder Co$.$ produces and sells high$-$quality video equipment. To finance its operations, Pinder issued $$25,000,000$ of $5-$year, $6\%$ bonds, with interest payable semiannually, at a market $($effective$)$ interest rate of $9\%.$DATA

Face amount of bonds $$25,000,000$

Contract rate of interest $6\%$

Term of bonds, years $5$

Market rate of interest $9\%($a$)$ Determine the present value of the bonds payable.

Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells show in the orange cells. Transfer amounts to CNOWv$2$ for grading.

Amount Formula

PV of bonds

Interest payment Semiannual