The correct option. Given information Face value of bond issued by Company C is $1,000,000. Maturity period is 10 years. Coupon rate is 9%. Effective rate of interest is 8%. Present value of $1 at 8% for 10 years is 0.4632. Present value of an ordinary annuity of $1 at 8 % for 10 years is 6.7101.

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Chapter 14, Problem 14.5MC

To determine

The correct option.

Given information

Face value of bond issued by Company C is $1,000,000.

Maturity period is 10 years.

Coupon rate is 9%.

Effective rate of interest is 8%.

Present value of $1 at 8% for 10 years is 0.4632.

Present value of an ordinary annuity of $1 at 8 % for 10 years is 6.7101.

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