Compute the Present Value of a Bond: the Principal Amount

question 8

Multiple Choice

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

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

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Definitions:

Humanistic Theories

Theories that view personality with a focus on the potential for healthy personal growth.

Free Association

A psychoanalytic therapy technique where patients vocalize their stream of consciousness without censorship as a way to uncover unconscious thoughts or feelings.

Psychotherapist

A professional who treats mental health issues by psychological rather than medical means, often through talk therapy.

Trivial

Of little importance or significance.