On January 1, 2016, Bonds with a Face Value of $72,000

Multiple Choice

On January 1, 2016, bonds with a face value of $72,000 were sold. The bonds mature on January 1, 2026. 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) $54,062
B) $74,160
C) $72,024
D) $72,000