Kinsey corporation issues $100,000 of 8% bonds, due in 25 years, when the market rate of interest is 9%. interest is paid semi annually on june 30 and december 31. the issue price of the bonds is:

a. $90,119
b. $90,177
c. $92,586
d. $100,000

Option a.

Explanation:

Given information:

Face value of bond = $100,000

Interest rate of bonds = 8%

Interest is paid semi annually, So the value of interest is

Market interest rate = 9%

Time = 25 years

Present value of annuity factor

Present value factor

Value of bond = (Present value of annuity factor × interest payment) + (present value factor × face value)

Value of the bond

The issue price of the bonds is $90,119.

Therefore, the correct option is a.

the correct answer is d. wealthy colonists to take care of the less fortunate. hope this

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.