Answer:
d. $44,161
Explanation:
The computation is shown below:
The present value of the periodic interest to be paid on the bonds is
= Face amount × interest rate × present value of an annuity at 6% for 10 years
= $100,000 × 6% × 7.36009
= $44,161
Refer to the present value of an annuity table
On a semiannual basis, the interest rate is half and the time period doubles =. The same is applied in the above calculation.
