Instructions: Use the present value and future value tables included in Appendix 8 and on the textbook companion website. If the market rate of interest is 12 percent and a company is issuing long-term bonds paying 10 percent, at what percent would those liabilities have to be discounted, assuming semiannual compounding?
A) 5 percent
B) 6 percent
C) 10 percent
D) 12 percent