Problem

A bond with a maturity value of $ 100,000 has a stated interest rate of 8 percent. The bon...

A bond with a maturity value of $ 100,000 has a stated interest rate of 8 percent. The bond matures in 10 years. When the bond is issued, the market rate of interest is 10 percent. What amount should be reported when the bond is issued?

a. $100,000

b. $87,707

c. $49,157

d. $113,421

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