Use the following tables to calculate the present value of a $502,000, 5%, 5-year bond that pays $25,100 ($502,000 × 5%) interest annually, if the market rate of interest is 10%.
Use the following tables to calculate the present value of a $502,000, 5%, 5-year bond that pays $25,100 ($502,000 × 5%) interest annually, if the market rate of interest is 10%.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...
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Use the following tables to calculate the present value of a $502,000, 5%, 5-year bond that pays $25,100 ($502,000 × 5%) interest annually, if the market rate of interest is 10%.
Present Value of $1 at Compound Interest
Periods5%6%7%10%10.952380.943400.934580.9090920.907030.890000.873440.8264530.863840.839620.816300.7513140.822700.792090.762900.6830150.783530.747260.712990.6209260.746220.704960.666340.5644770.710680.665060.622750.5131680.676840.627410.582010.4665190.644610.591900.543930.42410100.613910.558390.508350.38554Present Value of Annuity of $1 at Compound Interest
Periods5%6%7%10%10.952380.943400.934580.9090921.859411.833391.808021.7355432.723252.673012.624322.4868543.545953.465113.387213.1698754.329484.212364.100203.7907965.075694.917324.766544.3552675.786375.582385.389294.8684286.463216.209795.971305.3349397.107826.801696.515235.75902107.721737.360097.023586.14457Round your intermediate calculations and final answer to the nearest whole dollar.
$fill in the blank 1
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