Present Value of A form of an interest-bearing note used by corporations to borrow on a long-term basis.Bonds Payable; The interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price.Discount
Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder Co. issued $25,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%.
Determine the present value of the bonds payable, using the present value tables in Exhibit 8 and Exhibit 10. Round to the nearest dollar.