Alan Company issues bonds with a par value of $800,000 on their issue date. The bonds mature in 5 years and pay 6% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%.
Compute the price of the bonds on their issue date (rounded to the nearest dollar).
A) $736,130
B) $698,938
C) $640,305
D) $735,110

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The Answer of Alan Company issues bonds with a par value of $800,000 on their issue date. The bonds mature in 5 years and pay 6% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%.
Compute the price of the bonds on their issue date (rounded to the nearest dollar).
A) $736,130
B) $698,938
C) $640,305
D) $735,110

Alan Company Issues Bonds with a Par Value of $800,000