Multiple Choice
The principal amount of a bond is $65,000, its stated rate is 7%, and the term of the bond is 5 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.
A) $44,265
B) $18,453
C) $62,393
D) $65,000
Correct Answer:
Verified
Correct Answer:
Verified
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