St. Clair Drums issued $100,000 of 8-year, zero-coupon debenture bonds on January 1 when the market yield was 6%. The bond agreement stated that compounding was semiannual.  How much are the proceeds of the bond issue using Excel or a financial calculator? $100,000 $ 69,843 $ 50,160 $ 62,317

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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St. Clair Drums issued $100,000 of 8-year, zero-coupon debenture bonds on January 1 when the market yield was 6%.  The bond agreement stated that compounding was semiannual. 

How much are the proceeds of the bond issue using Excel or a financial calculator?

  1. $100,000
  2. $ 69,843
  3. $ 50,160
  4. $ 62,317
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