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On January 1,a Company Issues Bonds Dated January 1 with a Par

Question 166

Multiple Choice

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: 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: A) $205,607. B) $194,492. C) $200,000. D) $22,032. E) $172,460.


A) $205,607.
B) $194,492.
C) $200,000.
D) $22,032.
E) $172,460.

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