What is the present value of a 6%, $100,000 Bond, semi-annual pmts, 10 years, Market rate is 8% per year (4% year); 20 periods, $3000 payments, $100000 Face value IN EXCEL: 1 step PV (present value) Rate (interest %) Nper (# periods) PMT (annuity pmt) FV (Future Value) 1. Record the issuance of the Bond: 11/1/23 Accounts Cash Discount 86409 .04 20 3000 100000 Bonds payable Discount Interest Payable Interest Expense Interest Payable Discount Cash DR 86,409 13,591 - 2. Accrue the interest expense at year end: 12/31/2023 12/31/23 Accounts Interest Expense 86409 # 0.08 = 6912/12 =576*2=1152 DR 3. Record the first semi-annual interest payment at 6/1/2024 6/1/24 Accounts DR 1152 CR 2304 1000 100,000 CR 152 1000 CR 304 3000

1. What is the present value of a 6%,$100,000 Bond, semi-annual pmts, 10 years, Market rate is 8% per year ( 4%1/2 year); 20 periods, $3000 payments, $100000 Face value IN EXCEL: 1 step PV (present value) Rate (interest \%) Nper (\# periods) PMT (annuity pmt) FV (Future Value) 1 RorandtL.. 864040.08=8912/12=5762=1152