Present value of bonds payable; premium
DATA
Face amount of bonds	$40,000,000
Contract rate of interest	11%
Term of bonds, years	4
Market rate of interest	8%
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.

Present value of bonds payable; premium

Moss Co. issued $40,000,000 of four-year, 11% 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 answer in the question below.

Open spreadsheet

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