Question: on january 1 a company issues bonds dated january 1...

On January 1, a company issues bonds dated January 1 with a par value of $310,000. The bonds mature in 3 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9%. Using the present value factors below, the issue (selling) price of the bonds is:

n=		i=			Present Value of an Annuity			Present value of $1
3		8.0	%			2.5771		0.7938
6		4.0	%			5.2421		0.7903
3		9.0	%			2.5313		0.7722
6		4.5	%			5.1579		0.7679

Multiple Choice

• $317,993.

• $302,007.

• $310,000.

• $63,958.

• $238,049.