answer 16-19

16. $ rounded to nearest dollar) A ten year bond issue with a face amount of $100,000 bears interest at the rate of 6.9%. 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? 19. % BAD Company issues 8%,10-year bonds with a face amount of $1,000,000 on January 1,20A for the bond issuance? 16. $ rounded to nearest dollar) A ten year bond issue with a face amount of $100,000 bears interest at the rate of 6.9%. 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? 19. % BAD Company issues 8%,10-year bonds with a face amount of $1,000,000 on January 1,20A for the bond issuance