On October 1, 2010, a Calendar Year-End Company Issued a $100,000

Multiple Choice

On October 1, 2010, a calendar year-end company issued a $100,000, 10-year, 10% bond payable. The market rate of interest at that time was 12%. Interest is paid semi-annually. The following present value factors may be necessary:

The issue price of the bond on October 1, 2010, was

A) $ 88,350.
B) $ 89,350.
C) $ 89,700.
D) $100,300.
E) $145,700.