Calculating the Selling Price of a Bond The following facts relate to a bond that is being issued: Face Amount: .......................... $2,000,000 Stated Annual Interest Rate:... 9% Term: ....................................... 10 years Interest Paid: ........................... Annually A. If the effective annual interest rate is 10% when the bond is issued. What is the selling price of the bond? B. If the effective annual interest rate is 9% when the bond is issued. What is the selling price of the bond? C. If the effective annual interest rate is 8% when the bond is issued. What is the selling price of the bond