On January 1, a company issues bonds dated January 1 with a par value of $200,000. The bonds mature in 3 years. The contract rate is 4%, and interest is paid semiannually on June 30 and December 31. The market rate is 5%. Using the present value factors below, the issue (selling)price of the bonds is: $\begin{array}{llll}&&\text { Present Value of an }\
n=&i=&\text { Annuity }&\text { Present value of } \mathbb{\$1}\
3 & 4.0 \% & 2.7751 & 0.8890 \
6 & 2.0 \% & 5.6014 & 0.8880 \
3 & 5.0 \% & 2.7232 & 0.8638 \
6 & 2.5 \% & 5.5081 & 0.8623
\end{array}$
A)$172,460.
B)$194,492.
C)$22,032.
D)$205,607.
E)$200,000.

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The Answer of On January 1, a company issues bonds dated January 1 with a par value of $200,000. The bonds mature in 3 years. The contract rate is 4%, and interest is paid semiannually on June 30 and December 31. The market rate is 5%. Using the present value factors below, the issue (selling)price of the bonds is: $\begin{array}{llll}&&\text { Present Value of an }\
n=&i=&\text { Annuity }&\text { Present value of } \mathbb{\$1}\
3 & 4.0 \% & 2.7751 & 0.8890 \
6 & 2.0 \% & 5.6014 & 0.8880 \
3 & 5.0 \% & 2.7232 & 0.8638 \
6 & 2.5 \% & 5.5081 & 0.8623
\end{array}$
A)$172,460.
B)$194,492.
C)$22,032.
D)$205,607.
E)$200,000.

On January 1, a Company Issues Bonds Dated January 1