The Face Value of a Bond Is $75,000,its Stated Rate

question 52

Multiple Choice

The face value of a bond is $75,000,its stated rate is 7%,and the term of the bond is five 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.
Present value of $1:

Present value of annuity of $1:

• A)$53,709
• B)$21,291
• C)$71,991
• D)$75,000

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Definitions:

Circular

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Handheld Weapon

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