On January 1, Summer Inc issued a ten year bonds with a face amount of $ 1,000,000 and a state interest rate of 8% payable annually each January 1. The bonds were priced to yield at 10%. The total issue price (rounded) of the bonds should be what amount? Question 14 options: a) $ 880,000 b) $ 980,000 c) $

On January 1, Summer Inc issued a ten year bonds with a face amount of $ 1,000,000 and a state interest rate of 8% payable annually each January 1. The bonds were priced to yield at 10%. The total issue price (rounded) of the bonds should be what amount?

Question 14 options:

a)

$ 880,000

b)

$ 980,000

c)

$ 920,000

d)	$ 1,000,000

Expert Answer

The detailed answer for the above question is provided below: Answer: b) $ View the full answer