Alan Company issues bonds with a par value of $800,000 on their issue date. The bonds mature
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Question:
Alan Company issues bonds with a par value of $800,000 on their issue date. The bonds mature in 5 years and pay 6% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%.
Compute the price of the bonds on their issue date (rounded to the nearest dollar).
Select one:
A. $736,130
B. $698,938
C. $640,305
D. $735,464
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