The face value of a bond is $74,000, its stated rate is 7%, and the term of the bond is five years. The bond pays interest semiannually. At the time ofissue, the market rate is 8%. Determine the present value of the bonds at issuance.

Present value of$1:

4% 5% 6% 7% 8%

5 0.822 0.784 0.747 0.713 0.681

6 0.790 0.746 0.705 0.666 0.630

7 0.760 0.711 0.665 0.623 0.583

8 0.731 0.677 0.627 0.582 0.540

9 0.703 0.645. 0.592. 0.544. 0.500

10 0.676 0.614 0.558. 0.508. 0.463

A.$ 71,031

B.$ 52,993

C.$74,000

D.$ 21,007