Answer:
$45,323,443.20
Explanation:
The present value of the bonds consist of the present value of the semiannual interest payment i.e$42,000,000*11%*6/12=$2,310,000.00
The semiannual payment would be multiplied by the annuity for ten periods (5 years *2) using 4.5% (11%/2) which is 7.91272
present value of semiannual interest payment=7.91272 *2,310,000.00=$ 18,278,383.20
Present value of face value in after 10 periods=0.64393 *$42,000,000=$ 27,045,060.00
Total present value=$ 27,045,060.00+$18,278,383.20=$45,323,443.20
