The Megabucks Corporation Is Issuing a 5-Year Bond Paying 8

Multiple Choice

The Megabucks Corporation is issuing a 5-year bond paying 8% interest. An investor wishes to buy the rights to receive the interest on $90,000 worth of these bonds and seeks a 6% rate of return. If the investor payments are made continuously, what will the investor pay?

A) $281,983.06
B) $31,101.81
C) $311.02
D) $120,000.00
E) $1,866.11