Problem: What is the selling price (to the nearest dollar) of 4-year bonds with a par value of $200,000 and an annual coupon rate of 8% that are sold when the market rate of interest is 12%? A) $180,093 B) $175,697 C) $199,994 D) $200,000

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What is the selling price (to the nearest dollar) of 4-year bonds with a par value of $200,000 and an annual coupon rate of 8% that are sold when the market rate of interest is 12%?

A) $180,093

B) $175,697

C) $199,994

D) $200,000

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