Matthew Company issued 10-year, 7% bonds (paying semiannual interest) with a par value of $100,000. The market rate of interest when the bonds were issued was 6%. Compute the price of the bonds when they were issued.
A) $107,360.70
B) $93,206.05
C) $107,441.25
D) $93,290.70
E) $107,018.80
Answers: 3
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