A 10-year bond issue with a $100,000 par value, 8% annual contract rate, with interest payable semiannually means that the issuer must repay $100,000 at the end of 10 years and make 20 semiannual interest payments of $4,000 each.

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A 10-year bond issue with a $100,000 par value and an 8% annual contract rate, with interest payable semiannually, would require the issuer to make 20 semiannual interest payments of $4,000 each in addition to the repayment of the $100,000 principal at maturity.

A 10-Year Bond Issue with a $100,000 Par Value, 8