Multiple Choice
Compute the present value of a debenture. The principal amount is $50 000, the stated rate is 3%, and the term of the debenture is 6 years. The debenture pays interest half- yearly. At the time of issue, the market rate is 4%. Please compute the present value of the debenture at market rate using the present value tables.
A) $47 331
B) $7 931
C) $59 000
D) $39 400
Correct Answer:
Verified
Correct Answer:
Verified
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