21. $___________(rounded to nearest dollar) A ten year bond issue with a face amount of $500,000 bears interest at the rate of 3.25%. The current market rate of interest is 3.30%. Determine the issue price of this annual bond.

22. 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?

Both bonds will sell for the same amount.

Bond X will sell for more than Bond Y.

Bond Y will sell for more than Bond X.

Both bonds will sell at a premium.