Question

Present Value of Bonds Payable; Premium Moss Co. issued $480,000 of five-year, 11% bonds, with interest payable semiannually,

Exhibit 5 Present Value of $1 at Compound Interest Periods NMONO 4% 47% 0.96154 0.956940 0.92456 0.915730 0.88900 0.876300 0.Exhibit 7 Present Value of an Annuity of $1 at Compound Interest Periods 4% 472% 0.96154 0.95694 1.886091.87267 2.77509 2.748

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Answer #1

Interest payable each semiannum = 480,000 x 5.5% = $26,400 Present value of face value = $480,000 x PV of $1 at 5% for 10 per

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