Answered: Use the following tables to calculate…

Use the following tables to calculate the present value of a $763,000, 6%, 6-year bond that pays $45,780 ($763,000 x 6%) interest annually, if the market rate of interest is 7%.

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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Question

CO
a.
6o
0.74622
0.70496
0.66634
0.56447
9.
0.71068
0.66506
0.62275
0.51316
0.67684
0.62741
0.58201
0.64461
0.59190
0.54393
0.42410
6.
0.61391
0.55839
0.50835
0.38554
Present Value of Annuity of $1 at Compound Interest
spojad
0%9
0.95238
0.94340
0.93458
1.
606060
1.85941
1.83339
1.80802
1.73554
2.
2.72325
2.67301
2.62432
2.48685
3.
3.54595
3.46511
3.38721
3.16987
4.
4.32948
4.21236
4.10020
3.79079
5.07569
4.91732
4.76654
4.35526
5.78637
5.58238
5.38929
4.86842
7.
6.46321
6.20979
5.97130
5.33493
8.
7.10782
6.80169
6.51523
5.75902
6.
7.72173
6009
7.02358
6.14457
Round your intermediate calculations and final answer to the nearest whole dollar.
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3.
67
Use the following tables to calculate the present value of a $763,000, 6%, 6-year bond that pays $45,780 ($763,000 x 6%) interest annually, if the
market rate of interest is 7%.
Present Value of $1 at Compound Interest
spo
0.95238
0%%%
0.94340
0.93458
60606'0
2
000680
0.87344
0.82645
0.86384
0.83962
0.81630
0.75131
0.82270
0.79209
0.76290
0.68301
4.
0.78353
0.74726
0.62092
0.74622
0.70496
0.66634
0.56447
0.71068
0.66506
0.62275
0.51316
0.67684
0.62741
0.58201
0.46651
8.
0.64461
0.59190
0.54393
0.42410
0.61391
0.55839
0.50835
0.38554
Present Value of Annuity of $1 at Compound Interest
Periods
0%%9
0% L
0.95238
0.94340
0.93458
1.
60606'0
1.85941
1.83339
1.80802
1.73554
2.
2.72325
2.67301
2.62432
2.48685
3.
3.54595
3.46511
3.38721
3.16987
OVUCC V
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12/14/2021
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