Present Value of Bonds Payable; Premium

Moss Co. issued $810,000 of four-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.

What is the anaswer?

Please explain how you solve it and explain.

Exhibit 5 Present Value of $1 at Compound Interest 56% Periods 1 2 3 4 4% 0.96154 0.92456 0.88900 0.85480 0.82193 0.79031 0.75992 0.73069 0.70259 0.67556 47% 0.956940 0.915730 0.876300 0.838560 0.802450 0.767900 0.734830 0.703190 0.672900 0.643930 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0.64461 0.61391 6% 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.66506 0.62741 0.59190 0.55839 0.94787 0.89845 0.85161 0.80722 0.76513 0.72525 0.68744 0.65160 0.61763 0.58543 672% 0.93897 0.88166 0.82785 0.77732 0.72988 0.68533 0.64351 0.60423 0.56735 0.53273 5 7% 10% 11% 12% 13% 0.93458 0.90909 0.90090 0.89286 0.88496 0.87344 0.82645 0.81162 0.79719 0.78315 0.81630 0.75131 0.73119 0.71178 0.69305 0.76290 0.68301 0.65873 0.63552 0.61332 0.71299 062092 10.59345 0.56743 0.54276 066634 0.56447 0.53464 050663 0.62275 0.51316 0.48166 0.45235 042506 0.58201 0.46651 043393 0.40388 037616 0.54393 0.42410 0.39092 0.36061 033288 0.50835 0.38554 0.35218 0.32197 0.29459 0.48032 6 7 8 9 10 TOSHI ESC