Compute the Present Value of a Debenture

question 34

Multiple Choice

Compute the present value of a debenture. The principal amount is $140 000, the stated rate is 9%, and the term of the debenture is 4 years. The debenture pays interest half- yearly. At the time of issue, the market rate is 8%. Please compute the present value of the debenture at market rate using the present value tables.

• A)$102 340
• B)$42 418
• C)$142 000
• D)$144 758

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Complainers

Individuals who express dissatisfaction or grievances frequently.

Arbitrary Approach

A method or decision-making process based on individual discretion or judgment rather than fixed standards or rules.

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The structured set of practices and institutions through which a society organizes and governs itself.