A company issues $200,000 of 10% bonds that pay interest annually and have a five-year term. What will the selling price and the discount or premium of the bonds be if the market rate of interest is...

A company issues $200,000 of 10% bonds that pay interest annually and have a five-year term. What will the selling price and the discount or premium of the bonds be if the market rate of interest is 9% on the date the bonds are issued? Use the present value tables in Appendix A. A. $129,986 selling price, $70,014 discount B. $207,779 selling price, $7,779 premium C. $207,779 selling price, $7,779 discount D. $200,000 selling price, $7,779 discount