Patterson Company Is About to Issue $8,000,000 of 10-Year Bonds

Multiple Choice

Patterson Company is about to issue $8,000,000 of 10-year bonds paying an 8% interest rate with interest payable semiannually. The discount rate for such securities is 10%. Below are time value of money factors that Patterson uses to calculate compounded interest. To the closest dollar, how much can Patterson expect to receive for the sale of these bonds?

A) $7,003,027
B) $5,852,740
C) $16,000,000
D) $28,110,060