Question: Face amount: $ 1 2 0 , 0 0 0 Contract interest rate: 1 4 % Effective interest rate: 1 4 % Interest is paid

Face amount: $120,000
Contract interest rate: 14%
Effective interest rate: 14%
Interest is paid semiannually on January 1 and July 1
Term of bond: 6 years
Present Value of Ordinary Annuity of $1 per Period
\table[[Periods,3%,3.5%,4%,4.5%,5%,5.5%,6%,6.5%,7%
Face amount: $120,000 Contract interest rate: 14% Effective interest rate: 14%

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