Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 3

Bonds payable-calculate market value On August 1, 2008, Bonnie purchased $30,000 of Huber Co.'s 10%, 20-year bonds at face value. Huber Co. has paid the semiannual interest due on the bonds regularly. On August 1, 2016, market rates of interest had fallen to 8%, and Bonnie is considering selling the bonds.
Required:
Using the present value tables in Chapter 6, calculate the market value of Bonnie's bonds on August 1, 2016.