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Compute the Present Value of a Bond: the Principal Amount

Question 148

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

Correct Answer:

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