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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
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.
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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 ESCStep by Step Solution
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