Question

Requirement 1. Determine the present value of

10

-year

bonds payable with face value of

$ 83 comma 000

and stated interest rate of

12

%,

paid semiannually. The market rate of interest is

12

%

at issuance. (Round intermediary calculations and final answer to the nearest whole dollar.)

	Present Value
When market rate of interest is 12% annually	$83,003

Requirement 2. Same bonds payable as in requirement 1, but the market interest rate is

16

%.

(Round intermediary calculations and final answer to the nearest whole dollar.)

	Present Value
When market rate of interest is 16% annually	$66,739

Requirement 3. Same bonds payable as in requirement 1, but the market interest rate is

8

%.

(Round intermediary calculations and final answer to the nearest whole dollar.)

	Present Value
When market rate of interest is 8% annually