$8 Million, 6%, 10-Year Bonds Are Issued at Less Than

Multiple Choice

$8 million, 6%, 10-year bonds are issued at less than face value. Interest will be paid semi-annually. When calculating the market price of the bond, the present value of

A) $480,000 received for 10 periods must be calculated.
B) $240,000 received for 10 periods must be calculated.
C) $240,000 received for 20 periods must be calculated.
D) $480,000 received for 20 periods must be calculated.