Which one of the following is closest to the amount of cash SSA will receive upon issued?

SSA inc. issues 4% bonds with a lace value of $500,000 when the market rate of interest is 3% for similar bonds. The bonds mature in 10 years, and pay interest every six months .

Which one of the following is closest to the amount of cash SSA will receive upon issued?
A . $459,000
B. $500,000
C. $505,000
D. $543,000

View Answer

Answer: D