Compute the Present Value of a Debenture

question 26

Multiple Choice

Compute the present value of a debenture. The principal amount is $50 000, the stated rate is 3%, and the term of the debenture is 6 years. The debenture pays interest half- yearly. At the time of issue, the market rate is 4%. Please compute the present value of the debenture at market rate using the present value tables.

• A)$47 331
• B)$7 931
• C)$59 000
• D)$39 400

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A feature in Microsoft Office applications that allows users to copy multiple items (texts, images, etc.) for future use.

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