SSA inc. issues 4% bonds with a lace value of $500,000 when the market rate of interest is 3% for similar bonds. The bonds mature in 10 years, and pay interest every six months.

SSA inc. issues 4% bonds with a lace value of $500,000 when the market rate of interest is 3% for similar bonds. The bonds mature in 10 years, and pay interest every six months.

Which one of the following is closest to the amount of cash SSA will receive upon issued.
A . $459,000
B. $500,000
C. $505,000
D. $543,000

Answer: D