On January 1, 2016, Action Corporation issued a two-year, 5%, $1,000 bond payable. Beginning in 2017, interest is payable every January 1 over the life of the bond. The market rate of interest on January 1, 2016 is 3%. Calculate the present value of the bond issued by Action on January 1, 2016.

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The Answer of On January 1, 2016, Action Corporation issued a two-year, 5%, $1,000 bond payable. Beginning in 2017, interest is payable every January 1 over the life of the bond. The market rate of interest on January 1, 2016 is 3%. Calculate the present value of the bond issued by Action on January 1, 2016.

On January 1, 2016, Action Corporation Issued a Two-Year, 5