Question: Ultimate Butter Popcorn issues 5%, 20-year bonds with a face amount of $58,000. The market interest rate for bonds of similar risk and maturity is

Ultimate Butter Popcorn issues 5%, 20-year bonds with a face amount of $58,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price will the bonds issue?

Answer is not complete.

Bond Characteristics Amount
Face amount $58,000
Interest payment not attempted
Market interest rate 2.5%selected answer incorrect
Periods to maturity not attempted
Issue price $59,497selected answer incorrect

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