Multiple Choice
Compute the present value of a debenture. The principal amount is $140 000, the stated rate is 9%, and the term of the debenture is 4 years. The debenture pays interest half- yearly. At the time of issue, the market rate is 8%. Please compute the present value of the debenture at market rate using the present value tables.
A) $102 340
B) $42 418
C) $142 000
D) $144 758
Correct Answer:
Verified
Correct Answer:
Verified
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