Use the following information for questions.issued $100,000 of ten-year, 10% bonds that pay interest semiannually.The bonds are sold to yield 8%.
-Another step in calculating the issue price of the bonds is to
A) multiply $10,000 by the table value for 10 periods and 10% from the present value of an annuity table.
B) multiply $10,000 by the table value for 20 periods and 5% from the present value of an annuity table.
C) multiply $10,000 by the table value for 20 periods and 4% from the present value of an annuity table.
D) none of these.
Correct Answer:
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