Interest rates determine the present value of future amounts. (Round to the nearest dollar.) ....
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Accounting
Interest rates determine the present value of future amounts. (Round to the nearest dollar.)
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Requirement 1. Determine the present value of seven-year bonds payable with face value of $91,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. (Round intermediary calculations and final answer to the nearest whole dollar.)
| Present Value | |
|---|---|
| When market rate of interest is 12% annually |
Requirement 2. Same bonds payable as in requirement 1, but the market interest rate is 14%.
(Round intermediary calculations and final answer to the nearest whole dollar.)
| Present Value | |
|---|---|
| When market rate of interest is 14% annually |
Requirement 3. Same bonds payable as in requirement 1, but the market interest rate is 8%.
(Round intermediary calculations and final answer to the nearest whole dollar.)
| Present Value | |
|---|---|
| When market rate of interest is 8% annually |
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