On January 1, 2019, Bay Company issues bonds with a face value of $850,000 that pay 9%

Question:

On January 1, 2019, Bay Company issues bonds with a face value of $850,000 that pay 9% interest semiannually and mature in 15 years. The market interest rate at the date of issuance is 8%. What is the issue price of the bond?
a. $850,000.00
b. $923,491.41
c. $815,386.52
d. $567,656.32

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...

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