Question 27 (3 points)
Krystal Corporation issued $100,000 with a 4 percent stated rate of interest on
January 1. The effective rate of interest on that date was 6 percent and interest is
paid semiannually on June 30 and December 31. The bonds mature ten years from
now. What amount would bondholders be willing to pay Krystal on January 1 for the
bonds?
$100,000
$140,000
$85,280
$85,123