The Principal Amount Is $80,000, the Stated Rate Is 10

question 144

Multiple Choice

The principal amount is $80,000, the stated rate is 10%, and the term of the bond is 8 years. The bond pays interest semiannually. At the time of issue, the market rate is 9%. What is the present value of the bond at the market rate?

• A)$84,456
• B)$44,936
• C)$40,160
• D)$87,290

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