On January 1, 2024, Anne Teak Furniture issued $100,000 of 10% 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 12%. 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

$89,895

$93,554

$88,554

$85,176