Question

12A. On December 31, 2018, when the market interest rate is 10%, Gilbert Corporation issues $200,000 of 6 %, 4-year bonds payable. The bonds pay interest semiannually. Determnine the present value of the bonds at issuance. Click the icon to view Present Value of $1 table.) Click the icon to view Present Val Reference (Click the icon to view Future Value of $1 table.) (Click the ioon to view Future Valu Start by calculating the present value of the principal. (Enter factor amounts to three decimal plac Present Value of $1 PV of principal 7% 0.990 0.980 C.971 0.962 0952 0.943 0935 Value Factor Periads х = 1% 2% 3% 4% 5% 6% 8% 9% 10% 12 % 14% 15% 16% 18% 20% 0.909 0.893 0.877 0.870 862 0.847 0833 0.925 0917 200000 х C9430.925 0907 0.864 0.797 0769 0756 C.743 0.756 2 0.990 0.361 0.943 0.890 0873 0.857 0.842 0.828 0.718 0.694 0.675 0.658 3 0.971 0.840 0.794 0772 .751 0.641 0579 0.942 0.915 0.889 0816 0.712 0.609 0.735 0708 0.792 0763 0713 0.705 0666 0.665 0623 0.572 C552 C898 0.906 0883 0.888 0837 0.708 0.552 4 0.981 0.924 0.055 0823 0.683 0.636 0.592 0.516 0492 0437 0784 0.519 0497 5 0850 0402 0.951 0.822 0.747 0.681 0.621 0.567 0.476 0.630 0596 6 7 0.942 0.933 0.564 0.410 0.790 0.760 0.731 0.746 0.507 0.456 0452 0.400 0.376 0.351 0.327 0.308 0.284 0.322 0270 0.247 237 0215 0.208 0.187 0.182 0.163 0.432 0.370 0335 0.071 C813 0.711 0.583 0547 0.513 C.354 0.314 0279 0233 a.540 0502 0.500 0460 0.463 0422 0.853 C789 C.914 .786 0.703 0.905 0.820 0744 0.467 0404 0.923 0677 0.627 0.582 0.305 0.266 0.502 0544 0.558 0508 9 0.037 0.766 0.645 0.424 0.361 0.263 0.225 0.194 0.6760614 0.191 0.152 10 .386 0227 0.429 0388 0.350 0.397 0356 0.368 0.326 0.340 0290 a.315 0275 0.527 0479 11 0.896 0.804 C.722 0.650 0595 0.287 0.237 C.195 0.162 0.135 0557 0530 0505 0481 .158 0.145 C.125 0.108 12 0,.897 0.788 C701 0.625 0.497 0444 0.319 0.257 0.137 0.112 0.469 D415 0.601 0.290 0.229 13 0.879 C.870 0.758 0.743 0.773 0.681 0.116 0093 14 C.681 0.577 0.442 0.388 0.283 0.206 0.160 0.141 0.090 0078 0.084 0065 0.417 0.362 0.140 0.123 0.555 15 0.861 0642 0.239 0.183 0.728 C623 C605 0836 0.700 .587 0.88 0570 0.853 0.844 0.394 0339 0.37 0.350 0296 0.331 0277 0.292 0252 0.218 0.163 0.123 0.107 0.093 0.534 16 0458 0.093 0.071 0054 0.1980.146 0.108 0.180 0.130 0.095 0.081 C069 0.051 0.270 0231 0.045 17 0.714 0.513 0.436 0317 0.080 0.060 18 0.494 0.416 0.250 0.212 0038 0.070 .0800.043 0031 0.037 0026 15 0.828 0.475 0.396 0.232 0.194 0.164 0.116 0,083 0.104 0073 0.061 0.820 0377 0.312 l.149 D051 20 0.673 0554 0.456 0258 0.215 0.178 Enter any number in the edit fields and then click Check Answer. 0911 0.660 0.093 0.064 0.053 C044 0.031 0022 21 C538 0.439 0350 0.294 0242 0.199 0.164 0.135 2 parts remaining

Answer 1

Market interest Rate = 10% Life of the Bond = 4 Years For Semiannaal Paymnet = Periods = 4*2=8 Interest rate = 10%/2 = 5% Value * Factor (i=5%,n=8) = Pv of Principle 200000 0.677 135400 | *