1.Young Co. issues $800,000 of 10% bonds dated January 1, year 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in five years. The current market for similar bonds is 8%. The entire issue is sold on the date of issue. The following values are given:

	Present value of ordinary annuity		Present value of $1
N=10; i=0.04	8.11090		0.67556
N=10; i=0.05	7.72173		0.61391

What amount of proceeds on the sale of bonds should Young report?

$849,317

$864,884

$815,564

$799,997