present value of bonds payable [Orline × exhibe-5.gif (664x1740 ×!? MindTap . Ce

Question

present value of bonds payable

[Orline × exhibe-5.gif (664x1740 ×!? MindTap . Cengage ler × takeAssignment/takeAssignmentMain.do?invoker &takeAss; assignment-take&inprogress;=false Book Calculator Print item esent Value of Bonds Payable; Premium oss Co. issued $ 740,000 of four-year, 1 2% bonds, with interest parable semiarr uali·at a market letectve, interest tate etermine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar Feedbasi Check Aty were Remember, the selling price of a bond is the sum of the present values of: the face amount of the bonds due at the maturity date and the id on the bonds. The market rate of interest is used to compute the present value of both the face amount and the periadie interest Check My Work

Explanation / Answer

Cash flow Period PV factor 44400 1 to 4 6.4632 286967 740000 4 th 0.6768 500861 Present value of Bond 787828

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