On January 1,2018,bonds with a face value of $72,000 were sold.The bonds mature on January 1,2028.The face interest rate is 6%.The bonds pay interest semiannually on July 1 and January 1.The market rate of interest is 10%.What is the market price of the bonds on January 1,2018? 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 20 periods at 3% is 0.554.The present value of an ordinary annuity of $1 for 20 periods at 3% is 14.878.(Round your final answer to the nearest dollar. )
A)$54,062
B)$74,160
C)$72,024
D)$72,000

Question

Quizplus · Accepted Answer

($72,000 × 0.377)+ ($72,000 × 3% × 12.462)= $54,062

On January 1,2018,bonds with a Face Value of $72,000 Were