Akers Company sold bonds on July 1, 2014, with a face value of $100,000. These bonds are

Question:

Akers Company sold bonds on July 1, 2014, with a of $100,000. These bonds are due in 10 years. The stated annual interest rate is 6% per year, payable semiannually on June 30 and December 31. These bonds were sold to yield 8%.

Required:
How much did these bonds sell for on July 1, 2014?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...