Answer one problem from the list below. Indicate the number you want to
solve.  Happy answering! 
Market Stated Bonds Compute for the
No.  Date Years Terms
Rate Rate Payable Present Value 
Interest paid annually , Principal P
1 1/1/2021 5 12% 12%
paid at the end of the fifth year 5,000,000
Interest paid annually , Principal P
2 1/1/2021 5 15% 12%
paid at the end of the fifth year 5,000,000
Interest paid annually , Principal P
3 1/1/2021 5 10% 15%
paid at the end of the fifth year 5,000,000
Interest paid annually , Principal
paid in five equal annual P
4 1/1/2021 5 10% 15%
installments  starting December 5,000,000
31, 2021
Interest paid annually , Principal
paid in five equal annual P
5 1/1/2021 5 15% 12%
installments  starting December 5,000,000
31, 2021
Interest and Principal paid semi-
annually. Principal paid in 10 P
6 1/1/2021 5 10% 15%
equal installments  starting June 5,000,000
30, 2021
Interest and Principal paid semi-
annually. Principal paid in 10 P
7 1/1/2021 5 15% 18%
equal installments  starting June 5,000,000
30, 2021

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Exercises: Calculating Present Values

(Answers) - A2C Intacc2A

Kindly view answers and solutions below! 

 Market Stated Bonds Compute for the
No.  Date Years Terms
Rate Rate Payable Present Value 
Interest paid annually , Principal paid P
1 1/1/2021 5 12% 12%
at the end of the fifth year 5,000,000
Interest paid annually , Principal paid P
2 1/1/2021 5 15% 12%
at the end of the fifth year 5,000,000
Interest paid annually , Principal paid P
3 1/1/2021 5 10% 15%
at the end of the fifth year 5,000,000
Interest paid annually , Principal paid
P
4 1/1/2021 5 in five equal annual installments  10% 15%
5,000,000
starting December 31, 2021
Interest paid annually , Principal paid
P
5 1/1/2021 5 in five equal annual installments  15% 12%
5,000,000
starting December 31, 2021
Interest and Principal paid semi-
P
6 1/1/2021 5 annually. Principal paid in 10 equal 10% 15%
5,000,000
installments  starting June 30, 2021
Interest and Principal paid semi-
P
7 1/1/2021 5 annually. Principal paid in 10 equal 15% 18%
5,000,000
installments  starting June 30, 2021

PVF
Principa
1.)    5,000,000.00 1.12^-5 0.567426856         2,837,134.28
l
Interest 600000 (1-(1.12^-5))/.12 3.604776202         2,162,865.72
Total Present Value         5,000,000.00

2.) Principal          5,000,000 1.15^-5 0.497176735         2,485,883.68

Interest              600,000 (1-(1.15^-5))/.15 3.352155098         2,011,293.06
Total Present Value         4,497,176.74

3.) Principal          5,000,000 1.10^-5 0.620921323         3,104,606.62

Interest              750,000 (1-(1.10^-5))/.10 3.790786769         2,843,090.08
Total Present Value         5,947,696.69

 
4.) Principal          1,000,000 (1-(1.10^-5))/.10 3.790786769         3,790,786.77
Interest              750,000 (1.10^-1) 0.909090909             681,818.18
             600,000 (1.10^-2) 0.826446281             495,867.77
             450,000 (1.10^-3) 0.751314801             338,091.66
             300,000 (1.10^-4) 0.683013455             204,904.04
             150,000 (1.10^-5) 0.620921323               93,138.20
Total Present Value         5,604,606.62

5.) Principal          1,000,000 (1-(1.15^-5))/.15 3.352155098         3,352,155.10

Interest              600,000 (1.15^-1) 0.869565217             521,739.13
             480,000 (1.15^-2) 0.756143667             362,948.96
             360,000 (1.15^-3) 0.657516232             236,705.84
             240,000 (1.15^-4) 0.571753246             137,220.78
             120,000 (1.15^-5) 0.497176735               59,661.21
Total Present Value         4,670,431.02

6.) Principal              500,000 (1-(1.05^-10))/.05 7.721734929         3,860,867.46

Interest              375,000 (1.05^-1) 0.952380952             357,142.86
             337,500 (1.05^-2) 0.907029478             306,122.45
             300,000 (1.05^-3) 0.863837599             259,151.28
             262,500 (1.05^-4) 0.822702475             215,959.40
             225,000 (1.05^-5) 0.783526166             176,293.39
             187,500 (1.05^-6) 0.746215397             139,915.39
             150,000 (1.05^-7) 0.71068133             106,602.20
             112,500 (1.05^-8) 0.676839362               76,144.43
               75,000 (1.05^-9) 0.644608916               48,345.67
               37,500 (1.05^-10) 0.613913254               23,021.75
Total Present Value         5,569,566.27
7.) Principal              500,000 (1-(1.075^-10))/.075 6.864080956         3,432,040.48
Interest              450,000 (1.075^-1) 0.930232558             418,604.65
             405,000 (1.075^-2) 0.865332612             350,459.71
             360,000 (1.075^-3) 0.80496057             289,785.81
             315,000 (1.075^-4) 0.74880053             235,872.17
              270,000 (1.075^-5) 0.696558632             188,070.83
             225,000 (1.075^-6) 0.647961518             145,791.34
             180,000 (1.075^-7) 0.602754901             108,495.88
             135,000 (1.075^-8) 0.560702233               75,694.80
               90,000 (1.075^-9) 0.521583473               46,942.51
               45,000 (1.075^-10) 0.485193928               21,833.73
Total Present Value         5,313,591.90

 
 

Thank you for learning Intermediate Accounting Two.