Present value of bonds payable; discount

Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $20,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. 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.

Open spreadsheet

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

Present value of bonds payable; discount
DATA
Face amount of bonds	$20,000,000
Contract rate of interest	7%
Term of bonds, years	5
Market rate of interest	9%
Interest payment	Semiannual
Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green entry cell (B13) into the appropriate field in CNOWv2 for grading.
	Amount	Formula
PV of bonds	$41,916,643	Your answer should be a formula.