At the beginning of the year, a company issued a $1,000 face value bond. Interest on that bond is paid semiannually, the annual coupon rate on the bond is 9%, and the bond matures in ten years. The market rate of interest at the time the bond was issued was 10% on an annual basis. The amount of the initial liability recorded for this bond was closest to: Select exactly 1 answer(s) from the following: A. $938. B. $961. C. $1,000. D. $1,065.
A simple PV function on HP 12c tip: read carefully, it may be annual, semi, qtrly, or daily.