Present Value of Bonds Payable; PremiumMoss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market (effective) interest rate of 9%.Determine the present value of the bonds payable using the present value tables in Exhibit 8 and Exhibit 10. Round to the nearest dollar. Periods 4%12345678910Present Value of $1 at Compound Interest0.961540.92456 0.915730.889000.876300.854800.838560.821930.802450.790310.767900.759920.734830.730690.703190.702590.672900.675560.64393 0.613914½2%5%0.95694 0.952380.907035½2%0.947870.898450.863840.851610.822700.807220.78353 0.765130.74622 0.725250.710680.67684 0.65160 0.627410.64461 0.61763 0.591900.58543 0.55839EXHIBIT 812%13%6%6½%0.94340 0.938977%10% 11%0.93458 0.90909 0.900900.87344 0.826450.89286 0.884960.89000 0.881660.81162 0.79719 0.783150.839620.81630 0.751310.73119 0.711780.693050.792090.827850.777320.729880.613320.747260.56743 0.542760.70496 0.685330.506630.480320.76290 0.68301 0.65873 0.635520.71299 0.62092 0.593450.66634 0.56447 0.534640.68744 0.66506 0.64351 0.62275 0.51316 0.481660.60423 0.58201 0.46651 0.43393 0.403880.56735 0.543930.53273 0.508350.452350.425060.376160.42410 0.39092 0.360610.332880.38554 0.352180.321970.29459

Present value (PV) of the bond refers to the amount of money which is determined by discounting the…

Answered: Moss Co. issued $101,000 of five-year,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Moss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable using the present value tables in Exhibit 8 and Exhibit 10. Round to the nearest dollar.