The face value is $81,000,the stated rate is 10%,and the term of the bond is eight years.The bond pays interest semiannually.At the time of issue,the market rate is 8%.What is the present value of the bond at the market rate?
Present value of $1:

Present value of annuity of $1:

A)$90,445
B)$47,191
C)$43,141
D)$83,754

Question

The face value is $81,000,the stated rate is 10%,and the term of the bond is eight years.The bond pays interest semiannually.At the time of issue,the market rate is 8%.What is the present value of the bond at the market rate?
Present value of $1:

Present value of annuity of $1:

A)$90,445 
B)$47,191 
C)$43,141 
D)$83,754

Quizplus · Accepted Answer

A)
 11ea8a42_4f66_72b0_8b44_cbcfe5dae421_TB5024_00 11ea8a42_4f66_72b1_8b44_41d086466fd2_TB5024_00

The Face Value Is $81,000,the Stated Rate Is 10%,and the Term