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What is the bond issue price

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Question - Sharmer Company issues 5%, 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 Present Value of $1 factor for 3% and 10 semi-annual periods is .7441 and the Present Value of an Annuity factor for the same rate and period is 8.5302?

A. $957,355

B. $1,000,000

C. $1,250,000

D. $786,745

E. $1,213,255

Reference no: EM132078334

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