On January 1,a Company Issues Bonds Dated January 1 with a Par

Multiple Choice

On January 1,a company issues bonds dated January 1 with a par value of $200,000.The bonds mature in 3 years.The contract rate is 4%,and interest is paid semiannually on June 30 and December 31.The market rate is 5%.Using the present value factors below,the issue (selling) price of the bonds is:

A) $205,607.
B) $194,492.
C) $200,000.
D) $22,032.
E) $172,460.