On January 1, 2017, Bonds with a Face Value of $94,000

question 40

Multiple Choice

On January 1, 2017, bonds with a face value of $94,000 were sold. The bonds mature on January 1, 2027. The face interest rate is 8% annually. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 10% annually. 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 10 periods at 10% is 0.463. The present value of an ordinary annuity of $1 for 10 periods at 10% is 6.145. (Round your final answer to the nearest dollar.)

• A)$82,295
• B)$66,627
• C)$94,000
• D)$97,760

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Definitions:

Withhold Positive Outcomes

The act of not presenting or delaying favorable results or benefits.

Behaviour

The manner in which an individual acts or conducts themselves, especially towards others.

Personal Integrity

The quality of being honest and having strong moral principles that one refuses to violate.

Leadership

The act of guiding or directing a group towards achieving a goal.