Present value of bonds payable; discount

Pinder Co$.$ produces and sells high$-$quality video equipment. To finance its operations, Pinder issued $$28,000,000$ of $5-$year, $7\%$ bonds, with interest payable semiannually, at

a market $($effective$)$ interest rate of $8\%.$ This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input

your answers in the question below.

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Determine the present value of the bonds payable. Round your answer to the nearest dollar.

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$x$

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Remember, the selling price of a bond is the sum of the present values of the face amount of the bonds due at the maturity date and the periodic interest to be paid on the bonds.

The market rate of interest is used to compute the present value of both the face amount and the periodic interest.