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What is the present value of the bond that the firm records

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Problem 1: On January 1, 2021, a firm issues bonds with a face amount of $1,500,000. The stated rate is 10%, the market rate is 12%, the term is three years and payments are made twice a year, on June 30 and Dec. 31. What is the present value of the bond that the firm records on its books on the issue date?

Option 1: $1,426,240
Option 2: $1,500,000
Option 3: $1,576,135
Option 4: $1,795,039
Option 5: $2,188,195

Reference no: EM132823281

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