A company issues 8% bonds with a par value of $40,000 at par on January 1. The market rate on the date of issuance was 7%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:

n=		i=			Present Value of an Annuity			Present value of $1
3		10.0	%			2.4869		0.7513
6		5.0	%			5.0757		0.7462
3		11.0	%			2.4437		0.7312
6		5.5	%			4.9955		0.7252

• $74,933.

• $300,000.

• $217,560.

• $292,493.

• $307,508.