Question: Asay Corp. is planning on issuing bonds with a face value of $200,000 and a coupon rate of 2%. The bonds mature in 10 years

Asay Corp. is planning on issuing bonds with a face value of $200,000 and a coupon rate of 2%. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year.

Assume a 8% market interest rate. What the issuance price of the bonds on January 1 of this year?

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