Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Present value of bonds payable; premium Moss Co. issued $42,000,000 of 5 -year, 1196 bonds, with interest payable semiannually, at o market (effective) interest rate

image text in transcribed
image text in transcribed
image text in transcribed
Present value of bonds payable; premium Moss Co. issued $42,000,000 of 5 -year, 1196 bonds, with interest payable semiannually, at o market (effective) interest rate of 9\%. Deternine the present value of the bonds payable using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. Exhibit 5 Present Value of $1 at Compound Interest \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Periods & 45 & 4K2O & 5% & 54% & 6% & 6ys% & 7% & 10% & 11% & 12% & 13% \\ \hline 1 & 0.96154 & 0.956940 & ass23 & 0.94787 & 0.94340 & 0.93897 & 0.93458 & 0.50909 & 0.90090 & 0.9286 & 0.85496 \\ \hline 2 & 0.92456 & 0.915730 & apo7as & as9s4s & 0.99000 & 0.89165 & 0.87344 & 0.02645 & 0.81162 & argnis & a.78315 \\ \hline 3 & astoroo & 0.076000 & Q06384 & 0.05161 & 0.83962 & 0.82795 & 0.81630 & 075131 & 073119 & a.7117 & 059305 \\ \hline 4 & assuo & a.s3560 & 0.82270 & 0.00722 & 079202 & 0.77732 & 0.76290 & 0.68301 & 0.65873 & 0.63552 & 0.61332 \\ \hline 5 & omses & 0.002450 & ofass3 & 0.76513 & 074726 & 0,72938 & 071299 & 0.62092 & 0.59345 & 056749 & 054276 \\ \hline 6 & a7ros1 & 0767%00 & 074622 & 0.72525 & 0704% & 0.68533 & 0.06634 & ase4ty & ossus & asoess & 0.40032 \\ \hline 2 & 0.7592 & a734830 & 071068 & 0.68744 & 0.66506 & 0.64351 & 0.62275 & 0.51316 & 0.42166 & 0.45235 & 0.42506 \\ \hline a & 073060 & ax03190 & 0676114 & 0.65160 & 0.62741 & 0.60423 & 050201 & 0,46651 & 0.43393 & 040s8 & 037616 \\ \hline 9 & 070259 & 0.072000 & 0

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

Mathematics Of Finance

Authors: Petr Zima

2nd Edition

0070082030, 9780070082038

More Books

Students also viewed these Accounting questions

Question

Define self-esteem and discuss its impact on your life.

Answered: 1 week ago