The face value of a bond is $71,000,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 ordinary annuity of $1:
A) $50,844
B) $20,156
C) $68,152
D) $71,000
Correct Answer:
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