Question: Seaside issues a bond that has a stated interest rate of 7%, face amount of $40,000, and is due in 6 years. Interest payments are

Seaside issues a bond that has a stated interest rate of 7%, face amount of $40,000, and is due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Multiple Choice

$65,276.
$37,669.
$61,356.
$40,000.

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