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Stanford issues bonds dated January 1, 2019, with a par value of $245,000. The bonds' annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $226,938. Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Discount Amortization Unamortized Discount Carrying Value $ $ 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 06/30/2021 12/31/2021 Total 11,025 11,025 11,025 11,025 11,025 11,025 66,150 13,616 $ 13,772 13,934 16,111 16,296 > 33,015 84,212 $ $ (2,591) (2,767) (2,909) (3,086) (3,271) 21,990 18,062 18,062 S 226,938 15,471 229,529 12,704 X 232,276 9,795 229,367 6,709 226,281 3,438 X 223,010 0 245,000 $ $ General Motors advertised three alternatives for a 14-month lease on a new Tahoe: (1) zero dollars down and a lease payment of $1,900 per month for 14 months, (2) $6,500 down and $1,700 per month for 14 months, or (3) $41,000 down and no payments for 14 months. (Table B.1, Table B.2. Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) Calculate the total present value of lease payments under the three alternatives (assume the annual interest rate is 12% compounded monthly). n = i II Option 1 Amount Present Value Table Value 1.0000 Down Payment Monthly Payments Total Present Value Option 2 Down Payment Monthly Payments Total Present Value Table Value Amount Present Value 1.0000 Table Value Amount Present Value Option 3 Down Payment Total Present Value 1.0000 Indicate which is the best alternative (assume you have enough cash to accept any alternative). Option 1 Option 2 O Option 3 One advantage of e-retailing is the depth and breadth of selection it offers. True or False True False