16. $_____________(rounded to nearest dollar) A ten year bond issue with a face amount of $100,000 bears interest at the rate of 7.1%. The current market rate of interest is 7.0%. Determine the issue price of this annual bond.

17. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?

a. Both bonds will sell for the same amount.

b. Bond X will sell for more than Bond Y.

c. Bond Y will sell for more than Bond X.

d. Both bonds will sell at a premium.

18. Given the information below, which bond(s) will be issued at a premium?

	Bond 1	Bond 2	Bond 3	Bond 4
Stated Rate of Return	4%	6%	5%	8%
Market Rate of Return	3%	6%	6%	7%

19. _____% BAD Company issues 6%, 10-year bonds with a face amount of $1,000,000 on January 1, 20A for $1,000,000. Interest is paid semiannually on June 30 and December 31. What was the market interest rate for the bond issuance?