Solved

The Face Value of a Bond Is $75,000,its Stated Rate

Question 52

Multiple Choice

The face value of a bond is $75,000,its stated rate is 7%,and the term of the bond is five 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.
Present value of $1:
The face value of a bond is $75,000,its stated rate is 7%,and the term of the bond is five 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. Present value of $1: Present value of annuity of $1: A) $53,709 B) $21,291 C) $71,991 D) $75,000
Present value of annuity of $1:
The face value of a bond is $75,000,its stated rate is 7%,and the term of the bond is five 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. Present value of $1: Present value of annuity of $1: A) $53,709 B) $21,291 C) $71,991 D) $75,000


A) $53,709
B) $21,291
C) $71,991
D) $75,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q6: The main reason companies retire bonds prior

Q49: If a bond's stated interest rate is

Q50: Which of the following statements is true

Q51: Provide a definition of each of the

Q54: On January 1,2016,Belden,Inc.issued long-term notes payable for

Q55: On January 1,2017,Gaskin Cabinetry Company purchases $300,000

Q56: On March 1,2016,Vantage Services issued a 9%

Q57: In order to expand its business,the management

Q97: When a bond is matured,the carrying value

Q98: When a bond is issued at a