$2 million, 8%, 10-year bonds are issued at face value. Interest will be paid semi-annually. When calculating the market price of the bond, the present value of
A) $160,000 received for 10 periods must be calculated.
B) $2 million received in 10 periods must be calculated.
C) $2 million received in 20 periods must be calculated.
D) $80,000 received for 10 periods must be calculated.

Question

Quizplus · Accepted Answer

The Answer of $2 million, 8%, 10-year bonds are issued at face value. Interest will be paid semi-annually. When calculating the market price of the bond, the present value of
A) $160,000 received for 10 periods must be calculated.
B) $2 million received in 10 periods must be calculated.
C) $2 million received in 20 periods must be calculated.
D) $80,000 received for 10 periods must be calculated.

$2 Million, 8%, 10-Year Bonds Are Issued at Face Value