On January 1, the company purchased debt securities with a face value of $100,000. The securities mature

Question:

On January 1, the company purchased debt securities with a face value of $100,000. The securities mature in seven years. The securities have a stated interest rate of 8%, and interest is paid semiannually. The prevailing market interest rate on these debt securities is 12% compounded semiannually. Compute the fair value of the securities.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...