$5 Million, 5%, 10-Year Bonds Are Issued at Face Value

Multiple Choice

$5 million, 5%, 10-year bonds are issued at face value. Interest will be paid semi-annually. When calculating the market price of the bond, the present value of

A) $500,000 received for 10 periods must be calculated.
B) $5 million received in 10 periods must be calculated.
C) $5 million received in 20 periods must be calculated.
D) $250,000 received for 10 periods must be calculated.