Assume your company issues bonds using the following data:

• 1,000 bonds
• $1,000 par value per bond
• Stated interest rate of 2.85%
• Market interest rate of 2.55%
• 5 years (maturity date)
• Annual interest payments (end of the year)

What amount (PV) will investors value these bonds at (individual price per bond) on the date of issuance?

Pick one of the following:

$996.82

$1000.00

$1025.47

$1013.92

$986.20