On January 1, 2020, Bonds with a Face Value of $72,000

Multiple Choice

On January 1, 2020, bonds with a face value of $72,000 were sold. The bonds mature on January 1, 2030. The face interest rate is 6%. The bonds pay interest semiannually on July 1 and January
1) The market rate of interest is 10%. What is the market price of the bonds? The present value of
$1 for 20 periods at 5% is 0.377. The present value of an ordinary annuity of $1 for 20 periods at
5% is 12.462. The present value of $1 for 20 periods at 3% is 0.554. The present value of an
Ordinary annuity of $1 for 20 periods at 3% is 14.878. (Round your final answer to the nearest
Dollar.)

A) $72,000
B) $72,024
C) $54,062
D) $74,160