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On January 1, 2024, Anne Teak Furniture issued $100,000 of 8% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31.

On January 1, 2024, Anne Teak Furniture issued $100,000 of 8% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 8 years. The annual market rate for bonds of similar risk and maturity is 10%. What was the issue price of the bonds?

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Multiple Choice

$89,162

$99,202

$92,420

$88,420

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