Assume the same data as in Exercise 12–19, except that the current interest rate is 12%. Will the present value of your winnings using an interest rate of 12% be more than the present value of your...

Assume the same data as in Exercise 12–19, except that the current interest rate is 12%.

Will the present value of your winnings using an interest rate of 12% be more than the present value of your winnings using an interest rate of 5%? Why or why not?

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 Exhibits 8 and 10. Round to the nearest dollar.