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21- Seaside issues a bond that has a stated interest rate of 8%, face amount of $50,000, and is due in 6 years. Interest payments
21- Seaside issues a bond that has a stated interest rate of 8%, face amount of $50,000, and is due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 10%. What is the issue price of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Multiple Choice
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$45,569.
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$82,802.
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$77,842.
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$50,000.
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