Question

On December​ 31, 2018​, when the market interest rate is 14​%, Hayden Corporation issues $ 300...

On December​ 31, 2018​, when the market interest rate is 14​%, Hayden Corporation issues $ 300 comma 000 of 6​%, 4​-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. LOADING...​(Click the icon to view Present Value of​ $1 table.) LOADING...​(Click the icon to view Present Value of Ordinary Annuity of​ $1 table.) LOADING...​(Click the icon to view Future Value of​ $1 table.) LOADING...​(Click the icon to view Future Value of Ordinary Annuity of​ $1 table.) Start by calculating the present value of the principal. ​(Enter factor amounts to three decimal​ places, X.XXX.) Value x Factor = PV of principal x = Now calculate the present value of the stated interest. ​(Enter factor amounts to three decimal​ places, X.XXX.) ( Value x Semiannual interest rate ) x Factor = PV of stated interest ( x % ) x = ​Finally, calculate the present value of bonds payable. PV of principal + PV of stated interest = PV of bonds payable + =

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Answer #1
Present value of principal - (PV F @7% ,8.) 300000*0.582 $             1,74,600
Present value of interest (($300,0000 X 6% /2)*5.971) 9000*5.971 $                53,739
Present Value of Bond payable $             2,28,339

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