Question: For each problem given, find (a) the present value of the lump-sum payment, (b) the present value of the payments, and (c) the fair market

For each problem given, find (a) the present value of the lump-sum payment, (b) the present value of the payments, and (c) the fair market value of the bond.

Round each part of the answer to the nearest cent.

1. A company issues a 15-year $2,000 bond that pays $40 every six months. The current market interest rate is 6%.

2. A school board issues a 20-year $5,000 bond that pays $50 every six months. The current market interest rate is 4.5%.

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