On January 2, 20x5, Preston Corporation issued 20-year bonds payable with a face value of $300,000 and a face interest rate of 8 percent. The bonds were issued to yield a market interest rate of 9 percent. Interest is payable semi-annually on January 1 and July 1. In calculating the present value of the bond issue of January 2, 20x5, the periodic interest payments to be used are
A) $24,000.
B) $12,000.
C) $27,000.
D) $13,500.
B
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Indicate whether the statement is true or false
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