On March 1, 2005, Matt purchased $63,000 of Lawson Co.s 8%, 20-year bonds at face value. Lawson

Question:

On March 1, 2005, Matt purchased $63,000 of Lawson Co.’s 8%, 20-year bonds at face value. Lawson Co. has paid the annual interest due on the bonds regularly. On March 1, 2010, market interest rates had risen to 12%, and Matt is considering selling the bonds.

Required:
Using the present value tables in Chapter 6, calculate the market value of Matt’s bonds on March 1, 2010.