A Corporation Issues for Cash $9,000,000 of 8%, 25-Year Bonds

Multiple Choice

A corporation issues for cash $9,000,000 of 8%, 25-year bonds, interest payable semiannually. The amount received for the bonds will be

A) present value of 50 semiannual interest payments of $360,000, plus present value of $9,000,000 to be repaid in 25 years
B) present value of 25 annual interest payments of $720,000
C) present value of 25 annual interest payments of $720,000, plus present value of $9,000,000 to be repaid in 25 years
D) present value of $9,000,000 to be repaid in 25 years, less present value of 50 semiannual interest payments of $360,000