The Principal Amount of a Bond Is $65,000, Its Stated

question 62

Multiple Choice

The principal amount of a bond is $65,000, its stated rate is 7%, and the term of the bond is 5 years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. Determine the present value of the bonds at issuance.

• A)$44,265
• B)$18,453
• C)$62,393
• D)$65,000

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Definitions:

Happiness Category

Happiness category refers to the classification of different types or sources of happiness as studied in psychology, such as emotional well-being or life satisfaction.

Sadness Category

A classification used to group expressions, experiences, or instances of the emotion of sadness.

Major Categories

Principal or most significant classifications within a broader grouping or system.

Display of Emotions

The outward expression of feelings, such as happiness, anger, or fear, through facial expressions, gestures, and voice.