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
Correct Answer:
Verified
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