Learning Objective $7,$ E$12$A$-30$ Determining the present value of bonds payable

Appendix $12$A

Present Value $$77,594$

Interest rates determine the present value of future amounts. $($Round to the nearest

dollar.$)$

Requirements

Determine the present value of $10-$year bonds payable with face value of $$86,000$

and stated interest rate of $14\%,$ paid semiannually. The market rate of interest is

$14\%$ at issuance.

Same bonds payable as in Requirement $1,$ but the market interest rate is $16\%.$

Same bonds payable as in Requirement $1,$ but the market interest rate is $12\%.$