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Present Value of Bonds Payable; Premium Moss Co. issued $100,000 of five-year, 11% bonds with interest payable...

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Accounting

Present Value of Bonds Payable; Premium

Moss Co. issued $100,000 of five-year, 11% bonds with interestpayable semiannually, at a market (effective) interest rate of8%.

Determine the present value of the bonds payable, using thepresent value tables in Exhibit 8 and Exhibit 10.

Note: Round to the nearest dollar.

$

Answer & Explanation Solved by verified expert
3.6 Ratings (645 Votes)
Par value of bonds 100000 Stated interest rate 11 Semi annual interest payment 100000 x 11 x 612 5500 Market interest rate 8 Semi annual market interest rate 82 4    See Answer
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