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D E A 10 year, $300,000 bond is issued at a price to yield 10%. Interest is paid semiannually. 1 3 Annual contract rate(stated rate)

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D E A 10 year, $300,000 bond is issued at a price to yield 10%. Interest is paid semiannually. 1 3 Annual contract rate(stated rate) 12% 4 Annual market rate (effective rate) 10% 5 Payments within year 2 6 Years to maturity 10 7 Par (face) value $300,000 8 Issue price $337,387 9 10 Using the PV function, the issue price of the bond is determined to be $337,387. Function Arguments PV Rate Pmt Fy + numbe + = numbe Type Returns the present value of an investment, the total amount that a series of future payments is worth now. Which is the correct formula in cell B8? Multiple Choice O E-PVI+B4/B5,85*B6,B7B3/B5,67) d --PV1-84.65'86,6783,87) =PVI-84/85.65*36,67*33/85.37) E-PV-B3/B5,65'36.87B3/B5.67)

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