Whats the present value? Thanks alot! Use the following tables to calculate the present value of a $774,000 @ 6%, 5-year bond that pays $46,440 interest annually, ifthe market rate of interest is 7%. Round to the nearest dollar.Present Value of $1Present Value of Annuity of $1Periods5 %6 %7 %10 %Periods5 %6 %7 %10 %1.95238.94340.934581.95238.94340.93458.90909| 60606'.90703.89000.87344.8264521.859411.833391.808021.735543.86384.83962.81630.75131 |2.723252.673012.624322.486854.82270.79209.76290.6830143.545953.465113.387213.169875.78353.74726.71299.620924.329484.212364.100203.79079.74622.70496.66634.564476.5.075694.917324.766544.355267.71068.66506.62275.5131675.786375.582385.389294.868428.67684.62741.58201.4665186.463216.209795.971305.33493.64461.5919054393.42410 :9.7.107826.801696.515235.7590210.61391.55839.50835.38554107.721737.360097.023586.14457

Lets understand the basics. For calculating present value of bond, we need to use below formula. =…

Use the following tables to calculate the present value of a $774,000 @ 6%, 5-year bond that pays $46,440 interest annually, if the market rate of interest is 7%. Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1 Periods 5 % 6 % 7 % 10 % Periods 5 % 6 % 7 % 10 % 1 .95238 .94340 .93458 .90909 1 .95238 .94340 .93458 .90909 .90703 .89000 .87344 .82645 2 1.85941 1.83339 1.80802 1.73554 .86384 .83962 .81630 .75131 2.72325 2.67301 2.62432 2.48685 .82270 .79209 .76290 .68301 | 4 3.54595 3.46511 3.38721 3.16987 .78353 .74726 .71299 .62092 4.32948 4.21236 4.10020 3.79079 .74622 .70496 .66634 .56447 5.07569 4.91732 4.76654 4.35526 7 .71068 .66506 .62275 .51316 7 5.78637 5.58238 5.38929 4.86842 8 .67684 .62741 .58201 .46651 8. 6.46321 5.97130 5.33493 .64461 .59190 .54393 .42410 9 7.10782 6.80169 6.51523 5.75902 10 .61391 .55839 .50835 .38554 10 7.72173 7.36009 7.02358 6.14457

Use the following tables to calculate the present value of a $774,000 @ 6%, 5-year bond that pays $46,440 interest annually, if the market rate of interest is 7%. Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1 Periods 5 % 6 % 7 % 10 % Periods 5 % 6 % 7 % 10 % 1 .95238 .94340 .93458 .90909 1 .95238 .94340 .93458 .90909 .90703 .89000 .87344 .82645 2 1.85941 1.83339 1.80802 1.73554 .86384 .83962 .81630 .75131 2.72325 2.67301 2.62432 2.48685 .82270 .79209 .76290 .68301 | 4 3.54595 3.46511 3.38721 3.16987 .78353 .74726 .71299 .62092 4.32948 4.21236 4.10020 3.79079 .74622 .70496 .66634 .56447 5.07569 4.91732 4.76654 4.35526 7 .71068 .66506 .62275 .51316 7 5.78637 5.58238 5.38929 4.86842 8 .67684 .62741 .58201 .46651 8. 6.46321 5.97130 5.33493 .64461 .59190 .54393 .42410 9 7.10782 6.80169 6.51523 5.75902 10 .61391 .55839 .50835 .38554 10 7.72173 7.36009 7.02358 6.14457

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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