Mason Co. issued $430,000 of four-year, 11% bonds with interest payable semiannually, at a market (effective) interest rate of 10%. Determine the present value of the bonds payable, using the present value tables in Exhibit 4 and Exhibit 5. Round to the nearest dollar.

 

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EXHIBIT 4 Periods 4% 1 2 SAW N 3 4 5 6 77999 10 Present Value of $1 at Compound Interest 0.96154 0.92456 4½2% 0.956940 0.915730 0.88900 0.876300 0.85480 0.838560 0.82193 0.802450 0.79031 0.767900 0.75992 0.734830 0.73069 0.703190 0.70259 0.672900 0.67556 0.643930 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0.64461 0.61391 5½% 6% 0.94787 0.94340 0.89845 0.85161 0.80722 0.76513 0.65160 0.61763 0.58543 7% 0.93458 0.89000 0.87344 0.72525 0.70496 0.68744 0.66506 0.62741 0.59190 0.55839 10% 0.90909 0.82645 0.81630 0.75131 0.73119 0.68301 0.65873 0.62092 0.59345 0.56447 0.53464 0.51316 0.48166 0.46651 0.42410 0.38554 0.83962 0.79209 0.76290 0.74726 0.71299 0.66634 0.62275 11% 0.90090 0.81162 0.58201 0.54393 0.50835 0.43393 0.39092 0.35218 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 13% 0.88496 0.78315 0.69305 0.61332 0.54276 0.48032 0.42506 0.37616 0.33288 0.29459 EXHIBIT 4 Periods 4% 1 2 SAW N 3 4 5 6 77999 10 Present Value of $1 at Compound Interest 0.96154 0.92456 4½2% 0.956940 0.915730 0.88900 0.876300 0.85480 0.838560 0.82193 0.802450 0.79031 0.767900 0.75992 0.734830 0.73069 0.703190 0.70259 0.672900 0.67556 0.643930 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0.64461 0.61391 5½% 6% 0.94787 0.94340 0.89845 0.85161 0.80722 0.76513 0.65160 0.61763 0.58543 7% 0.93458 0.89000 0.87344 0.72525 0.70496 0.68744 0.66506 0.62741 0.59190 0.55839 10% 0.90909 0.82645 0.81630 0.75131 0.73119 0.68301 0.65873 0.62092 0.59345 0.56447 0.53464 0.51316 0.48166 0.46651 0.42410 0.38554 0.83962 0.79209 0.76290 0.74726 0.71299 0.66634 0.62275 11% 0.90090 0.81162 0.58201 0.54393 0.50835 0.43393 0.39092 0.35218 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 13% 0.88496 0.78315 0.69305 0.61332 0.54276 0.48032 0.42506 0.37616 0.33288 0.29459

Answer rating: 100% (QA)

Price of bond C PVIFA i n M PVIF i n mFace Value 430000 C Coupon amount Face Value Co... View the full answer