Question: A company issues $ 1 0 0 , 0 0 0 par value, 4 % bonds on January 1 2 0 XX with interest paid

A company issues $100,000 par value, 4% bonds on January 120XX with interest paid on June 30 and December 31. On the issue date, the market rate is 6%. The present value of the bond will be calculated using an interest rate of:
Multiple choice question.
3%
4%
2%
6%

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