
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Assume bonds payable are amortized using the
Determining the present
Interest rates determine the present value of future amounts. (Round to the nearest dollar.)
Requirements
- Determine the present value of 10-year bonds payable with face value of $86,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance.
- Same bonds payable as in Requirement 1, but the market interest rate is 16%.
- Same bonds payable as in Requirement 1, but the market interest rate is 12%.
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