Mirtha Mudflat Has Sufficient Funds to Choose One of Two

Mirtha Mudflat has sufficient funds to choose one of two investments. The same amount will be invested in either case. Choice one: ten year $100,000 5% Treasury bonds issued to yield 4% per annum, the market rate. Choice two: a risky bond of the same amount that has expected cash flows of $9,000 per year for the same period. What is the issue price of the Treasury bond?

A) $100,000
B) $108,110
C) $92,278
D) $125,000
E) None of the above