1. On January 1, 2016, Broker Corp. issued $2,000,000 par value 12%, 10-year bonds which pay interest each December 31. If the market rate of interest was 14%, what was the issue price of the bonds? (The present value factor for $1 in 10 periods at 12% is 0.3220 and at 14% is 0.2697. The present value of an annuity of $1 factor for 10 periods at 12% is 5.6502 and at 14% is 5.2161.)

A) $1,791,264.

B) $2,000,000.

C) $2,226,009.

D) $1,895,814.

2. On January 1, 2016, Jason Company issued $4.9 million of 11-year bonds at a 11% coupon interest rate to be paid annually. The following present value factors have been provided:

Time Period	Interest	PV of $	PV of an Annuity
11	11%	0.317	6.207
11	9%	0.388	6.805
11	13%	0.261	5.687

Calculate the issuance price if the market rate of interest is 13%.

A) $4,336,693.

B) $4,386,693.

C) $4,900,000.

D) $4,344,193.