Marwick Corporation issues 8%, 5 year bonds with a par value of $1,070,000 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 Present Value factors:n= i= Present Value of an Annuity Present value of $15 8?% 3.9927? 0.6806?10 4?% 8.1109? 0.6756?5 6?% 4.2124? 0.7473?10 3?% 8.5302? 0.7441?
A. $859,244
B. $704,907
C. $1,435,093
D. $1,161,279.56
E. $1,070,000
Answer: D
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