Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder Co. 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 inExhibit 8andExhibit 10. Round to the nearest dollar.

m Present Value of an Annuity of $1 at Compound Interest Perluds ummummawm 4% 0.96154 I .88609 2.??509 3.62990 4.45182 5.24214 6.00205 6?32?4 143533 8.1 1090 41696 0.95694 1.8?26? 2.?4896 3.58?53 4.38998 5.1528? 5.892?0 659589 1268?9 1912?2 5% 0.95238 1 .85941 2.?2325 3.54595 4.32948 5.0?569 5.2863? 6.46321 110?82 1221 3'3 516% 0.9428? 1 .84632 2.69?93 3.5051 5 4.2?028 4.99553 5.6829? 6.3345? 6.95220 ?53?63 6% 0.94340 1.83339 2.6.1301 3.46511 4.21236 4.91 232 5.58238 6.20979 6.80169 136009 616% 0.9389? 1.82063 2.64848 3.42580 4.15568 4.84101 5.48452 6.088?5 6.65610 118883 2% 0.93458 1 .80802 2.62432 3.38?21 4.10020 4.?6654 5.38929 5.9?1 30 6.51523 102358 1 0% 0.90909 1.?3554 2.48685 3.1698? 3.?90?9 4.35526 4.86842 5.33493 5.?5902 6.1445? 1 1 '16 0.90090 1 .?1252 2.443 3'1 3.10245 3.69590 4.23054 4.?1220 5.1461 2 5.53 ?05 5.88923 1 2% 0.89286 1.69005 2.40183 3.03?35 3.60438 4.1 1 141 4.563?6 4.96264 5.32825 5.65022 1 3% 0.88496 1.66810 2.36115 2.9?44? 3.51323 3.99255 4.42261 4.7963? 5.13166 5.42624 E I H I 3 IT 3 Present Value of $1 at Compound Interest PEIIOdS 433 412533 5% 512533 5% 516 3'1: 2% 10% II 'I 33 II 2% II 3% 0.961 54 0.956940 0.95233 0.94232 0.94340 0.93392 0.93453 0.90909 0.90090 0.39236 0.33496 0.92456 0.915230 0.90203 0.39345 0.39000 0.33166 0.32344 0.32645 0.31 162 0.29219 0.23315 0.33900 0.326300 0.36334 0.35161 0.33962 0.32235 0.31630I 0.25131 0.23119 0.21 123 0.69305 0.35430 0.333560 0.32220 0.30222 0.29209 0.22232 0.26290 0.63301 0.65323 0.63552 0.61332 0.321 93 0.302450 0.23353 0.2651 3 0.24226 0.22933 0.21 299 0.62092 0.59345 0.56243 0.54226 0.29031 0.262900 0.24622 0.22525 0.20496 0.63533 0.66634 0.56442 0.53464 0.50663 0.43032 0.25992 0.234330 0.21063 0.63244 0.66506 0.64351 0.62225 051316 0.43166 0.45235 0.42506 0.23069 0.203190 0.62634 0.65160 0.62241 0.60423 0.53201 0.46651 0.43393 0.40333 0.32616 0.20259 0.622900 0.64461 0.61263 0.59190 056235 0.54393 0.42410 0.39092 0.36061 0.33233 0.62556 0.643930 0.61391 0.53543 0.55339 053223 0.50335 0.33554 0.35213 0.32192 0.29459 mmwmm-pwud _| a