The present value of the bonds payable using the present value tables in exhibit 5 and exhibit 7 is $45,323,443.20
The present value of the bonds consist of the present value of the semiannual interest payment
i.e$42,000,000*11%*6/12=$2,310,000.00
The semiannual payment would be multiplied by the annuity for ten periods
(5 years *2) using 4.5% (11%/2) which is 7.91272
present value of semiannual interest payment
=7.91272 *2,310,000.00=$ 18,278,383.20
Present value of face value in after 10 periods
=0.64393 *$42,000,000=$ 27,045,060.00
Total present value
=$ 27,045,060.00+$18,278,383.20
=$45,323,443.20
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