Question
On January 1, 2020, bonds with a face value of $94,000 were sold. The bonds mature on January 1, 2030. The face interest rate is
On January 1,
2020,
bonds with a face value of
$94,000
were sold. The bonds mature on January 1,
2030.
The face interest rate is 8% 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? 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 0.463. The present value of an ordinary annuity of $1 for 10 periods at 10% is 6.145. (Round your final answer to the nearest dollar.)
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