ABC company issues 10-year, $200,000 bonds on January 1, 20x1. The stated rate is 10%, interest is payable semi-annually on 6/30 and 12/31. The effective rate is 12%. Calculate the amount of cash received for the bonds.

Present value of 1 for 20 periods at 5% .......... .377

Present value of 1 for 20 periods at 6% .......... .312

Present value of annuity for 20 periods at 5% .... 12.462

Present value of annuity for 20 periods at 6% .... 11.470