Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $25,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable, using the present value tables in Exhibits 5 and 7. (Round to the nearest dollar.)

Present value of $1 for 10 semiannual periods at 4.5% semiannual rate	Answer:
Face amount of bonds	Answer:
Present value of bond face amount	Answer:

Present value of an annuity of $1 for 10 periods at 4.5%	Answer:
Semiannual interest payment	Answer:
Present value of semiannual interest payment	Answer:

Total present value of the bond (proceeds)

Answer:

Exhibit 5 : Present Value of $1 at Compound Interest

Exhibit 7: Present Value of an Annuity of $1 at Compound Interest

Periods 4 52% 62% 11 % 0.96154 0.956940 0.95238 0.94787 0.94340 0.93897 0.93458 0.90909 0.90090 0.89286 0.88496 0.92456 0.915730 0.90703 0.89845 0.89000 0.88166 0.873440.82645 0.81162 0.79719 0.78315 0.88900 0.876300 0.86384 0.85161 0.83962 0.82785 0.81630 0.75131 0.73119 0.71178 0.69305 0.85480 0.838560 0.82270 0.80722 0.79209 0.77732 0.76290 0.6830 0.65873 0.63552 0.61332 0.82193 0.802450 0.78353 0.76513 0.74726 0.72988 0.71299 0.62092 0.593450.56743 0.54276 0.79031 0.767900 0.74622 0.72525 0.70496 0.68533 0.66634 0.56447 0.53464 0.50663 0.48032 0.75992 0.734830 0.71068 0.687440.66506 0.6435 062275 0.51316 0.48166 0.45235 0.42506 0.73069 0.703190 0.67684 0.65160 0.62741 0.60423 0.58201 0.46651 0.43393 0.40388 0.37616 0.70259 0.672900 0.64461 0.61763 0.59190 0.56735 0.54393 0.42410 0.39092 0.36061 0.33288 0,675560.643930 0.61391 0.58543 0,55839 0.532730.50835 0.38554 0.35218 0.32197 0,29459 5% 6% 7% 10% % 12% 13% 3 5 2 2 Periods 4 % 5% 6% 10 % 11 % 12 % 3 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.90909 0.90090 0.89286 0.88496 188609 87267 1.85941 .84632 1.83339 182063.80802 7355471252 1.69005 1.66810 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 2.48685 2.44371 2.40183 2.36115 3.62990 3.58753 3.54595 3.50515 3.46511 3.42580 3.3872 3.16987 3.10245 3.03735 2.97447 4.45182 4.38998 4.32948 4.27028 4.21236 4.15568 4.10020 3.79079 3.69590 3.60478 3.51723 5.24214 5.15787 5.07569 4.99553 4.91732 484101 4.76654 4.35526 4.23054 4.11141 3.99755 6.00205 5.89270 5.786375.68297 5.58238 5.48452 5.38929 4.86842 4.71220 4.56376 4.42261 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 5.33493 5.14612 496764 4.79677 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 5.75902 5.53705 5.328255.13166 8,11090 7.91272 7,72173 7,53763 7.36009 7.18883 7.02358 6.144575.88923 5.650225.42624 2 2 2