Air Destinations issues a bond due in 10 years with a stated interest rate of 6% and a face value of $500,000. Interest payments are made semi-annually. The market rate for this type of bond is 5%. What is the issue price of the bond (rounded to nearest whole dollar)? (Use Table 2 and Table 4, contained within a separate file.)
A. $537,194.
B. $500,000.
C. $538,972.
D. $464,469.
Answer: C
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Fill in the blank(s) with the appropriate word(s).