Jia Hua Enterprises Wants to Issue Sixty 20-Year, $1,000 Par

Multiple Choice

Jia Hua Enterprises wants to issue sixty 20-year, $1,000 par value, zero-coupon bonds. If each bond is priced to yield 7 percent, how much will Jia Hua receive (ignoring issuance costs) when the bonds are first sold?

A) $11,212
B) $12,393
C) $15,505
D) $18,880