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On January 1, a Company Issues 8

Question 164

Multiple Choice

On January 1, a company issues 8%. 8 year, $500,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 10%. The following information is taken from present value tables: On January 1, a company issues 8%. 8 year, $500,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 10%. The following information is taken from present value tables: What is the issue (selling) price of the bond, rounded to the nearest whole dollar? A) $500,000 B) $461,384 C) $460,000 D) $450,000 E) $540,573 What is the issue (selling) price of the bond, rounded to the nearest whole dollar?


A) $500,000
B) $461,384
C) $460,000
D) $450,000
E) $540,573

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