Find what is the issue price of the bond for abc company

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Problem 1: ABC company issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments of the bond are made semi-annually. The market rate for the bond is 12%. What is the issue price of the bond?

a. $50,000.
b. $83,920.
c. $53,605.
d. $46,320.

Reference no: EM132824173

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