Marwick Corporation issues 8%, 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 Present Value factors:n= i= Present Value of an Annuity Present value of $15 8% 3.9927 0.680610 4% 8.1109 0.67565 6% 4.2124 0.747310 3% 8.5302 0.7441
A. $1,000,000
B. $658,792
C. $1,085,308
D. $1,341,208
E. $789,244
Answer: C
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