On January 1,2014,bonds with a Face Value of $100,000 Were

question 154

Multiple Choice

On January 1,2014,bonds with a face value of $100,000 were sold.The bonds mature on January 1,2024.The stated rate of interest is 8%.The bonds pay interest semiannually on July 1 and January 1.The market rate of interest is 10%.What is the market price of the bonds? The present value of 1 for 20 periods at 5% is 0.377.The present value of an ordinary annuity of $1 for 20 periods at 5% is 12.462.The present value of 1 for 20 periods at 4% is 0.456.The present value of an ordinary annuity of $1 for 20 periods at 4% is 13.59.

• A)$87,548
• B)$92,346
• C)$99,960
• D)$100,000