On January 1,a company issues 8%,5-year,$300,000 bonds that pay interest semiannually.On the issue date,the annual market rate of interest is 6%.The following information is taken from present value tables: What is the issue (selling)price of the bond?
A)$420,000
B)$402,362
C)$300,010
D)$308,107
E)$325,592

Question

On January 1,a company issues 8%,5-year,$300,000 bonds that pay interest semiannually.On the issue date,the annual market rate of interest is 6%.The following information is taken from present value tables:  What is the issue (selling)price of the bond?
A)$420,000 
B)$402,362 
C)$300,010 
D)$308,107 
E)$325,592

Quizplus · Accepted Answer

The Answer of On January 1,a company issues 8%,5-year,$300,000 bonds that pay interest semiannually.On the issue date,the annual market rate of interest is 6%.The following information is taken from present value tables:  What is the issue (selling)price of the bond?
A)$420,000 
B)$402,362 
C)$300,010 
D)$308,107 
E)$325,592

On January 1,a Company Issues 8%,5-Year,$300,000 Bonds That Pay Interest