Banister Company wishes to issue $600,000 of 10-year, 7% bonds, with interest paid annually at the end of the year. The market rate of interest is currently 5%. What information is needed in order to determine the issue price of the bond?
A) The market rate of interest, the stated rate of interest, the bond rating, and the bond life.
B) The face value of the bonds, the stated rate of interest, the market rate of interest, and the bond life.
C) The life of the bonds, the market rate of interest, the bond rating, and the face value of the bonds.
D) The face value of the bonds, the market rate of interest, the purpose of the issue, and the bond life.
B
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