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On January 1, 2019, bonds with a face value of $73,000 were sold. The bonds mature on January 1, 2029. The face interest rate is
On January 1, 2019, bonds with a face value of $73,000 were sold. The bonds mature on January 1, 2029. The face interest rate is 8% annually. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 12% annually. What is the market price of the bonds on January 1, 2019? 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 10 periods at 12% is 0.322. The present value of an ordinary annuity of $1 for 10 periods at 12% is 5.65. (Round your final answer to the nearest dollar.) A. $75,920 B. $73,000 C. $56,268 D. $40,004
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