Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Present Value of Bonds Payable; Premium Moss Co. issued $180,000 of five-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate

image text in transcribedimage text in transcribedimage text in transcribed

Present Value of Bonds Payable; Premium Moss Co. issued $180,000 of five-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 12%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. 158,773 X Exhibit 5 Present Value of $1 at Compound Interest Periods 1 4% 0.96154 2 0.92456 3 0.88900 4 0.85480 5 0.82193 6%% 0.93897 0.88166 0.82785 0.77732 0.72988 6 0.79031 075992 8 0.73069 9 070259 10 0.67556 0.643930 41% 5% 51% 6% 7% 10% 11% 12% 13% 0.956940 0.95238 0.94787 0.94340 0.93458 0.90909 0.90090 0.89286 0.88496 -0.915730 0.90703 0.89845 0.89000 0.87344 0.82645 0.81162 079719 0.78315 0.876300 0.86384 0.85161 0.83962 0.81630 0.75131 0.73119 0.71178 0.69305 0.838560 0.82270 0.80722 0.79209 0.76290 0.68301 0.65873 0.63552 061332 0.802450 0.78353 0.76513 0.74726 0.71299 0.62092 0.59345 056743 054276 0.767900 0.74622 0.72525 0.70496 0.68533 0.66634 0.56447 0.53464 0.50663 048032 0.734830 0.71068 0.68744 0.66506 0.64351 0.62275 051316 0.48166 045235 0.42506 0.703190 0.67684 0.65160 0.62741 0.60423 0.58201 0.46651 0.43393 0.40388 0.37616 0.672900 0.64461 0.61763 059190 0.56735 0.54393 0.42410 0.39092 0.36061 033288 0.61391 0.58543 0.55839 0.53273 050835 0.38554 0.35218 032197 0.29459 Exhibit 7 Present Value of an Annuity of $1 at Compound Interest Periods 4% 1 0.96154 2 1.88609 4% 5% 0.95694 0.95238 1.87267 1.85941 3 237509 2.74896 2.72325 4 3.62990 3.58753 3.54595 3.50515 3.46511 S 4.45182 4.38998 4.32948 6 9 10 6.73274 7.43533 811090 4.21236 5.24214 5.15787 5.07569 4.99553 4.91732 6.00205 5.89270 5.78637 5.68297 5.58238 6.59589 646321 726879 7.10782 7.91272 7.72173 4.27028 6.33457 6.20979 608875 6.95220 6.80169 665610 7.53763 7.36009 7.18883 515% 6% 61% 7% 10% 11% 12% 13% 0.94787 0.94340 0.93897 0.93458 0.90909 0.90090 0.89286 0.88496 1.84632 1.83339 1.82063 1.80802 1.73554 171252 1.69005 1.66810 2.69793 2.67301 264848 2.62432 2.48685 244371 240183 236115 342580 3.38721 3.16987 3.10245 3.03735 2.97447 4.15568 4.10020 3.79079 3.69590 3.60478 3.51723 4.84101 4.76654 4.35526 4.23054 4.11141 3.99755 5.48452 5.38929 4.86842 471220 456376 442261 5.97130 5.33493 5.14612 4.96764 4.79677 6.51523 5.75902 553705 5.32825 5.13166 7.02358 6.14457 5.88923 5.65022 542624

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

More Books

Students also viewed these Accounting questions

Question

Prove that if Σ an is absolutely convergent, then a. an

Answered: 1 week ago