
Present
Bond payable has two types of payments, for the principal and for the interest. To calculate the present value of bonds, the present value of future principal payments and present value of future interest payment are added together. Following formula are used to calculate present value of bonds:
1. Present value of bonds using 14% market interest rate:
To determine:
The present value of bonds payable
2. Present value of bonds using 16% market interest rate:
To determine:
The present value of bonds payable
3. Present value of bonds using 12% market interest rate:
To determine:
The present value of bonds payable

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Chapter 14 Solutions
Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
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