Moss Co. issued $105,000 of four-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.

2 answers
Question:

Moss Co. issued $105,000 of four-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.

Answers

Answer:price of the bond= $ 117,462.53.Explanation:price of the bond = present  value of coupon payment + present value of face value.price of the bond= PMT X (1-( 1/( 1+r∧n))/r + ( face value/(1+r)∧nprice of the bond= 6300x (1-(1.045∧10))/0.045 + (105000/1.045∧10)price of the bond= $ 117,462.53.therefore the present value of  the bonds payable using thepresent value table is evaluated to be $ 117,462.53.

Answer:$115,388Explanation:The explanation is shown in the picture below

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