1)When the market rate of interest was 11% waverly corporation issued $1000000

1)When the market rate of interest was 11% waverly corporation issued $1000000 12% at 8-year bonds that pay interest semiannually . The selling price of
this bond issue was

a) $1052310

b) $987 537

c) $1000000

d) $720 495

2) the periodic interest rate to be paid on the face amount of bonds as stated in the bond indenture is called the

a) contract rate or coupon rate

b) effective rate

c) market rate

d) straight-line rate

3) if the market rate of interest is 8% the price of 6% bond paying interest semiannually with a face value of $100000 will be

a) equal to $100000

b) greater than $100000

c) less than $100000

d) greater than or less than $100000 depending on the maturity date of the bonds