Gnome Shelters issued 60 $1,000 bonds 7% 10-year bonds on July 1, 20X1. The bonds pay interest semi-annually on January 1 and July 1. What is the fair value of bond on July 1, 20X1 if the market rate of interest is 7.4%

Periods	Interest	PV of 1	PV of Ordinary Annuity	PV of Annuity due
10	7.0%	0.5083	7.0236	7.5152
10	7.4%	0.4897	6.8955	7.4058
20	7.0%	0.5026	14.2124	14.7098
20	7.4%	0.4835	13.9586	14.4751
Periods	Interest	FV of 1	FV of Ordinary Annuity	FV of Annuity due
10	7.0%	1.9672	13.8164	11.9780
10	7.4%	2.0419	14.0803	13.1790
20	7.0%	1.9898	28.2797	26.3572
20	7.4%	2.0681	28.8680	27.8737

• A.

  $58,343

• B.

  $59,408

• C.

  $60,000

• D.

  $58,323