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 is the total amount of cash your company will receive on the date of issuance? Choose from the following:

$996,820

$1,000,000

$1,013,920

$1,025,470

$986,200