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Compute the issue price of the bonds on July

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Question - On July 1, 2021, Alabama Company issued 10% bonds dated July 1, 2021, with a face amount of $20 million. The bonds mature in 10 years. For bonds of similar risk and maturity, the market yield is 11%. Interest is paid semiannually, on June 30th and December 31st. Compute the issue price of the bonds on July 1, 2021?

A) $20,000,000

B) $18,822,060

C) $18,993,980

D) $18,804,980

Reference no: EM132514121

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