A company issued $500,000 of bonds for $498,351. Interest is paid semiannually. The bond markets and the financial press are likely to report the bond issue price as

Question

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In this case, the company issued $500,000 of bonds for $498,351. To find the reported price, you would do the following calculation:
Issue Price Percentage = (Issue Price / Face Value) * 100
Issue Price Percentage = ($498,351 / $500,000) * 100
Issue Price Percentage = 0.996702 * 100
Issue Price Percentage = 99.67
Therefore, the bond markets and the financial press are likely to report the bond issue price as 99.67, which corresponds to option c.99.67. This indicates that the bonds were issued at a slight discount to their face value.

A Company Issued $500,000 of Bonds for $498,351