Present Value of Bonds Payable; Premium Moss Co. Issued $160,000 of five-year, 12% bonds, with interest payable semiannually, at a market (effective) Interest rate of 11% Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 2. Round to the nearest dollar. Exhibit 5 Present Value of $1 at Compound Interest Periods 5% 56% 69 471% 0.956940 642% 79 13% 1 0.95238 0.94787 4% 0.96154 0.92456 0.89900 0.94340 126 0.89206 0.93458 11% 0.90090 081162 0.93897 0.88166 2 0.89845 0.87344 10% 0.90909 0.82645 075131 0.68301 0.915730 0.376300 0.838560 0.99000 0.83962 3 0.85161 0.82785 0.73119 0.81630 0.76290 0.79719 0.71178 0.63552 4 0.85480 0.80722 0.79200 0.65873 5 0.82193 0.802450 0.90703 0.86384 0.82270 0.78353 0.74622 071068 0.67684 0.76513 0.74726 0.71299 0.62092 0.39345 0.56743 0.77732 0.72988 0.68533 0.54051 6 0.79031 0.88496 0.78315 0.69305 067332 054276 048032 0.42506 037616 033288 020459 0.72525 0.66634 0.767900 0.734830 0.50663 0.56147 051316 7 0.75992 0.68744 0.62275 0.45235 0.53464 0.48166 0.43393 0.39092 8 0.73069 0.65160 0.70496 0.66506 0.62741 0.59190 0.55839 060423 046651 0.40389 0.703190 0.672900 0.543930 0.58201 054393 9 0.70259 0.61461 0,61763 0.56735 042410 0.36061 10 0.67556 0.61391 058543 0.53273 0.50835 038554 0.35218 0.32197 Exhibit 7 Prosent Value of an Annuity of S1 at Compound Interont 12 64% 10% Periods 49% 5% 0.94787 0.89266 1,69005 0.94340 1 5% 0.95230 15941 272325 3.54595 14632 79 0.93458 130002 262432 3.31721 0.95694 1.7267 274896 358753 1,83339 0.95897 1.82063 2.64848 4% 0.96154 188609 2.77509 362990 4A5182 524214 6.00205 0.90909 1.73554 248605 216987 3 2.67301 3.46511 2.69793 3.50515 427028 3.42580 11 0.90090 131252 2/44371 3.10245 369590 423054 471220 5.14612 5.53705 529923 2/10183 3.03735 3760478 4.11141 13% 088406 166810 2236115 29720 3.51723 3.99755 442261 479677 5.13162 5:42624 4 410020 4.15568 421236 3.79079 435526 4329448 438998 5 4.34101 499553 456376 5.07569 4.86842 5.78637 491732 5.58238 620979 496764 5.33493 7 4.76654 538929 5.97130 651523 7.02358 5.15787 5.89270 659589 726879 7.91272 532825 546452 6.08875 6,65610 7.18883 6.46321 5.68297 6.33457 695220 753763 55902 673274 3 5.65022 6.80169 7.36009 6.14457 9 7.10782 7.72173 743533 811090 10 Use the format below to assist in your bond pricing calculations. Upload this document immediately upon completion of the exam to receive credit. Bonds Face amount Term Contract Rate What is the amount of the semi-annual interest navment2 Market Rate Will the bonds be issued at a discount or premium? Present Value of the Semiannual Interest Payment Interest Rate Number of Periods Factor Present Value of the Interest Payments Present Value of the Bond Face Amount Interest Rate Number of Periods Factor Present Value of the Face Bonds Proceeds
