Question: Please show mathematical computation. No excel please. A bond with a face value of $100,000 was issued for $93,500 on January 1 of this year.

Please show mathematical computation. No excel please.

A bond with a face value of $100,000 was issued for $93,500 on January 1 of this year. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. Interest is paid annually. How much interest will be paid on December 31 of this year? a. $10,000 b. $8,000 c. $7,480 d. $9,350

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