On August 1, 2011, Bonnie purchased $30,000 of Huber Co.s 10%, 20-year bonds at face value. Huber

Question:

On August 1, 2011, Bonnie purchased $30,000 of Huber Co.’s 10%, 20-year bonds at face value. Huber Co. has paid the semiannual interest due on the bonds regularly. On August 1, 2019, market rates of interest had fallen to 8%, and Bonnie is considering selling the bonds.

Required:

Using the present value tables in Chapter 6, calculate the market value of Bonnie’s bonds on August 1, 2019.

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