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What is the present value of a $100,000, twenty year, bonds payable that pays 4% interest semi-annually and the current market interest rate is 5%?
What is the present value of a $100,000, twenty year, bonds payable that pays 4% interest semi-annually and the current market interest rate is 5%? Note that you will calculate the PV of the 100,000 single-sum and the PV of the semi-annual interest payments. The current price of this bond will be the sum of both of these PV's.
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