Bonds that pay interest semiannually

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Reference no: EM131206536

Fox Co. issued $100,000 of ten-year, 10% bonds that pay interest semiannually. The bonds are sold to yield 8%. Another step in calculating the issue price of the bonds is to

a. multiply $10,000 by the table value for 10 periods and 10% from the present value of an annuity table.

b. multiply $10,000 by the table value for 20 periods and 5% from the present value of an annuity table.

c. multiply $10,000 by the table value for 20 periods and 4% from the present value of an annuity table.

d. none of these answers is correct.

Reference no: EM131206536

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