Present Value of Bonds Payable; Premium

Moss Co. issued $590,000 of five-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 11%.

Determine the present value of the bonds payable

Exhibit 5 Present Value of $1 at Compound Interest Periods 4% 44% 0.96154 0.956940 0.92456 0.915730 0.88900 0.876300 0.85480 0.838560 0.82 193 0.802450 0.79031 0.767900 0.75992 0.734830 0.73069 0.703190 0.702590.672900 0.67556 0.643930 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0.64461 0.61391 5%% 0.94787 0.94340 0.89845 0.89000 0.85161 0.83962 0.80722 0.79209 0.76513 0.74726 0.72525 0.70496 0.68744 0.66506 0.65160 0.62741 0.61763 0.585430.55839 67% 0.93897 0.88166 0.82785 0.77732 0.72988 0.68533 0.64351 0.60423 0.56735 0.53273 7% 0.93458 0.873.44 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 10% 11% 12% 0.909090.90090 0.89286 0.82645 0.81162 079719 0.75131 0.73119 071178 0.68301 0.65873 0.63552 0.62092 0.59345 0.56743 0.56447 0.53464 0.50663 0.51316 048166 045235 0.46651 043393040388 0.42410 0.390920_36061 0.38554 0.35218 0.32197 13% 0.88496 0.78315 0.69305 0.61332 054276 0.48032 0.42506 0.37616 0.33288 0.29459 Exhibit 7 Present Value of an Annuity of $1 at Compound Interest Periods 4 419 54% 0.96154 0.95694 0.95238 0.94787 1.88609 1.87267 1.85941 1.84632 2.77509 2.74896 2.72325 2.69793 3.62990 3.58753 3.54595 3.50515 4.45182 4.38998 4.32948 4.27028 5.24214 5.157875.07569 4.99553 6.00205 5.89270 5.78637 5.68297 6.73274 6.595896.46321 7.435337268797.10782 6.95220 8.11090 7.91272 7.72173753763 0.94340 1.83339 2.67301 3.46511 4.21234 6% 10% 11% 12% 13% 0.93897 0.93458 0.909090.90090 0.89286 0.88496 1.82063 1.80802 1.73554 171252 1.69005 166810 2.64848 2.62432 248685 244371 240183 2.36115 3.42580 3.38721 3.16987 3.10245 3.03735 2.97447 4.15568 4.10020 3.79079 3.69590 3.60478351723 4,84101 4.76654 4.35526 4.23054 4.11141 3.99755 548452 5.389294.86842 4.71220 4.56376 442261 6.08875 5.97130 5.33493 5.14612 4.96764 4.79677 6.65610 651523 5.759025.537055.32825 5.13166 7.18883202358 6.144575.80923 5.65022 542624 491732 5.58238 6.33457 6.80169 7.36009