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

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The bond issue with a $100,000 par value and an 8% annual contract rate, with interest payable semiannually and a 10-year life, requires the issuer to make 20 payments of $4,000 ($100,000 x 8% x 1/2 = $4,000) over the 10-year period, in addition to the repayment of the $100,000 par value at the end of 10 years.

A Bond Issue with a $100,000 Par Value,an 8% Annual