9 ) On January 1 , 2014 , Ellison Co . issued eight-year bonds with a face value of $ 4,000,000 and a stated interest rate of 6 %, payable semiannually on June 30 and December 31 . The bonds were sold to yield 8 %. Table values are :
Present value of 1 for 8 periods at 6 % . 627
Present value of 1 for 8 periods at 8 % . 540
Present value of 1 for 16 periods at 3 % . 623
Present value of 1 for 16 periods at 4 % . 534
6.210
Present value of annuity for 8 periods at 6 %
5.747
Present value of annuity for 8 periods at 8 %
12.561
Present value of annuity for 16 periods at 3 %
Present value of annuity for 16 periods at 4 %
11.652