Question: Need help with this question. Present Value of Bonds Payable; Premium Moss Co. issued $460,000 of five-year, 13% bonds, with interest payable semiannually, at a
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Present Value of Bonds Payable; Premium Moss Co. issued $460,000 of five-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.\fExhibit 7 Present Value of an Annuity of $1 at Compound Interest Periods 4% 412% 5% 5 1/2% 6% 61/2% 7% 10% 11% 12% 13% 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.90909 0.90090 0.89286 0.88496 1.82063 1.80802 1.73554 1.71252 1.69005 1.66810 W N - 1.88609 1.87267 1.85941 1.84632 1.83339 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 2.48685 2.44371 2.40183 2.36115 3.62990 3.58753 3.54595 3.50515 3.46511 3.42580 3.38721 3.16987 3.10245 3.03735 2.97447 5 4.45182 4.38998 4.32948 4.27028 4.21236 4.15568 4. 10020 3.79079 3.69590 3.60478 3.51723 6 5.24214 5.15787 5.07569 4.99553 4.91732 4.84101 4.76654 4.35526 4.23054 4.11141 3.99755 7 6.00205 5.89270 5.78637 5.68297 5.58238 5.48452 5.38929 4.86842 4.71220 4.56376 4.42261 8 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 5.33493 5.14612 4.967 64 4.79677 9 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 5.75902 5.53705 5.32825 5.13166 10 8.11090 7.91272 7.72173 7.53763 7.36009 7.18883 7.02358 6.14457 5.88923 5.65022 5.42624Bonds Face amount Term Contract Rate What is the amount of the semi-annual interest navment? Market Rate Will the bonds be issued at a discount or premium? Present Value of the Semiannual Interest Payment Interest Rate Number of Periods Factor Present Value of the Interest Payments Present Value of the Bond Face Amount Interest Rate Number of Periods Factor Present Value of the Face Bonds Proceeds Amount of Discount or Premium
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