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On January 1, 2018, bonds with a face value of $78,000 were sold. The bonds mature on January 1, 2028. The face interest rate is
On January 1, 2018, bonds with a face value of $78,000 were sold. The bonds mature on January 1, 2028. The face interest rate is 6%. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 12%. What is the market price of the bonds on January 1, 2018? The present value of $1 for 20 periods at 6% is 0.312. The present value of an ordinary annuity of $1 for 20 periods at 6% is 11.47. 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.) O A. $78,027 O B. $80,340 O C. $78,000 OD. $51,176
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