Calculating Bond Present Value
ABC Paper Corporation plans to issue $50,000 in bonds due in 10 years, with a 6% interest rate and $4,000 in coupon interest payments. Assume that the present value factor of the principal is .512 and the present value factor of the coupon interest payments is 4.98. What is the present value of the bond?
A
$48,790
B
$38,460
C
$45,520
D
$42,250