Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2019, bonds with a face value of $109,000 were sold. The bonds mature on January 1, 2029. The face interest rate is
On January 1, 2019, bonds with a face value of $109,000 were sold. The bonds mature on January 1, 2029. The face interest rate is 10 % annually. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 10 % annually. What is the market price of the bonds on January 1, 2019? The present value of $1 for 20 periods at 5 % is 0.377. The present value of an ordinary annuity of $1 for 20 periods at 5 % is 12.462. The present value of $1 for 10 periods at 10 % is 0.508. The present value of an ordinary annuity of $1 for 10 periods at 10% is 6.71. (Round your final answer to the nearest dollar.) OA. $113,360 O B. $95,427 OC. $84,628 OD. $109,000 see see
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started