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On January 1, 2017, Satin Corp.issued eight-year, 6% bonds with a face value of $500,000, with interest payable semi-annually on June 30 and December 31.The bonds were sold to yield 8%.Table values are:
-The present value of the principal is
A)$267,000.
B)$270,000.
C)$311,500.
D)$313,500.

Question

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On January 1, 2017, Satin Corp.issued eight-year, 6% bonds with a face value of $500,000, with interest payable semi-annually on June 30 and December 31.The bonds were sold to yield 8%.Table values are: 
-The present value of the principal is
A)$267,000. 
B)$270,000. 
C)$311,500. 
D)$313,500.

Quizplus · Accepted Answer

The present value of the principal is $267,000, as it is the only option that matches the given value.

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