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What is the bond issue price

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Reference no: EM132060522

Question - Marwick Corporation issues 20%, 5 year bonds with a par value of $1,120,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 18%. What is the bond's issue (selling) price, assuming the Present Value of $1 factor for 9.0% and 10 semi-annual periods is 0.4224 and the Present Value of an Annuity factor for the same rate and period is 6.4177?

$1,120,000

$909,244

$1,838,782

$1,191,870

$401,218

Reference no: EM132060522

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