Sharmer Company issues 5%, 5-year bonds with a par value of $1,000,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the following factors:n= i= Present Value of an Annuity(series of payments) Present value of 1(single sum)5 5% 4.3295 0.783510 3% 8.7521 0.78125 6% 4.2124 0.747310 3% 8.5302 0.7441
A. $1,213,255
B. $957,355
C. $1,000,000
D. $1,250,000
E. $786,745
Answer: B
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