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On January 1, a company issues 8%. 5 year, $300,000 bonds that pay interest semiannually....

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Accounting

On January 1, a company issues 8%. 5 year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 6%. The following information is taken from present value tables:

Present value of an annuity for 10 periods at 3% 8.5302 Present value of an annuity for 10 periods at 4% 8.1109 Present value of 1 due in 10 periods at 3% 0.7441 Present value of 1 due in 10 periods at 4% 0.6756

What is the issue (selling) price of the bond? $420,000 $402,362 $300,010 $308,107 $325,592

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