On January 1, 2020, Bonds with a Face Value of $94,000

question 43

Multiple Choice

On January 1, 2020, bonds with a face value of $94,000 were sold. The bonds mature on January 1, 2030. 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) $94,000
• B) $66,627
• C) $82,295
• D) $97,760

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Definitions:

Reasonable Manner

Conducting oneself in a way that a prudent person would consider fair and appropriate under the circumstances.

Emancipated Minor

A minor who has legally been granted independence from parental control, often involving financial self-sufficiency or marriage.

Capacity to Contract

refers to the legal ability of a person to enter into a binding agreement.

Ward's Capacity

The legal competence or ability of a ward (a person under the protection of a legal guardian) to act in their own interests.