Mirtha Mudflat Has Sufficient Funds to Choose One of Two

Mirtha Mudflat has sufficient funds to choose one of two investments.The same amount will be invested in either case.Choice one: ten year $100,000 5% Treasury bonds issued to yield 4% per annum,the market rate.Choice two: a risky bond of the same amount that has expected cash flows of $9,000 per year for the same period. What is the issue price of the Treasury bond?

A) $100,000
B) $108,110
C) $92,278
D) $125,000
E) None of the above