On July 1, 2017, Alabama Company issued 10% bonds dated July 1, 2017, with a...
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On July 1, 2017, Alabama Company issued 10% bonds dated July 1, 2017, 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. The issue price of the bonds on July 1, 2017 is closest to:
A) $20,000,000 B) $18,822,060 C) $18,993,980 D) $18,804,980
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