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Interest rates determine the present value of future amounts. (Round all numbers to the nearest...

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Accounting

Interest rates determine the present value of future amounts. (Round all numbers to the nearest whole dollar.)

2. Present Value $71,329

Requirements:

1. Determine the present value of six-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance.

2. Same bonds payable as in Requirement 1, but the market interest rate is 16%.

3. Same bonds payable as in Requirement 1, but the market interest rate is 10%.

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