On January 1, 2016, Bonds with a Face Value of $72,000

question 51

Multiple Choice

On January 1, 2016, bonds with a face value of $72,000 were sold. The bonds mature on January 1, 2026. The face interest rate is 6%. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 10%. What is the market price of the bonds? The present value of $1 for 20 periods at 5% is 0.377. The present value of an ordinary annuity of $1 for 20 periods at 5% is 12.462. The present value of $1 for 20 periods at 3% is 0.554. The present value of an ordinary annuity of $1 for 20 periods at 3% is 14.878. (Round your final answer to the nearest dollar.)

• A)$54,062
• B)$74,160
• C)$72,024
• D)$72,000

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