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What is the present value of the bond issue

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Problem 1: Texxon Corporation issued $200,000 of 10-year bonds with a payment rate of 6%; payments are made semiannually. Assume that the market interest rate for similar investments is 4%, compounded semiannually. What is the present value (issue price) of this bond issue at the market rate of interest?

a. $199,478
b. $ 98,106
c. $232,706
d. $134,600

Reference no: EM132740309

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