U.S.Delay Corporation,a subsidiary of the Postal Service,must decide whether to issue zero coupon bonds or quarterly payment bonds to fund construction of new facilities.The $1,000 par value quarterly payment bonds would sell at $795.54,have a 10% coupon rate,and mature in 10 years.At what price would the zero coupon bonds with a maturity of 10 years have to sell to earn the same effective annual rate as the quarterly payment bonds?
A)$220.77
B)$232.39
C)$244.62
D)$257.50
E)$270.37

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The Answer of U.S.Delay Corporation,a subsidiary of the Postal Service,must decide whether to issue zero coupon bonds or quarterly payment bonds to fund construction of new facilities.The $1,000 par value quarterly payment bonds would sell at $795.54,have a 10% coupon rate,and mature in 10 years.At what price would the zero coupon bonds with a maturity of 10 years have to sell to earn the same effective annual rate as the quarterly payment bonds?
A)$220.77
B)$232.39
C)$244.62
D)$257.50
E)$270.37

USDelay Corporation,a Subsidiary of the Postal Service,must Decide Whether to Issue