A company issues $100,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually. The bonds are issued when the market rate is 8%. The present value tables indicate the present value factor of an annuity for 3% at 10 periods is 8.5302; and for 4% at 10 periods is 8.1109. To find the present value of the interest payments, multiply. by the present value factor $3,000; 8.1109 $3,000; 8.5302 $4,000; 8.5302 $4,000; 8.1109

A company issues $100,000 of 6,5-year bonds dated Janoaty 1 that pay interest semiannually. The bonds ace issued when the market rate is 8%. The presim vaitue tables indicate the present value factor of an annuity for 34 at 10 periods is 8.5302 ; and for 4 Xat 10 periods is 8 . 109 : To find the present value of the interest payments, nisitiply by the present value foctor $3,000:81109 $3,000;8.5302 $4,000,8,5302 \$4,000:81109