Compute the Present Value of a Bond: the Principal Amount

question 143

Multiple Choice

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

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

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Definitions:

Fund-raising Effort

Organized activities or campaigns undertaken to gather financial support for a specific cause or organization.

Fund-raising Priorities

The strategic determination of which financial goals or projects an organization will pursue first, based on their importance and potential impact.

End-of-Life Care

Care designed to provide support and comfort to individuals in the final phase of a terminal illness, focusing on quality of life.

Financial Gift

Monetary donations provided to support an individual, organization, or cause without expecting anything in return.