Crane Corporation is about to issue $1,400,000 of 10-year bonds that pay a 4% annual interest rate, with interest payable semi-annually. The market interest rate is 5%. Assuming all bonds are issued, how much can Crane expect to receive for the sale of these bonds?

Fill in the remaining variables in the table that follows. (Round rate to 1 decimal place, e.g. 25.5%.)

Variable		Financial Calculator or Tables		Excel
Present value		PV		PV		?
Future value		FV		FV		$____
Interest rate		I		Rate		___	%
Amount of annuity payment		PMT		PMT		$ ____
Number of periods		N		Nper		____

Calculate the proceeds from the sale of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.)

Proceeds from the sale of the bonds

$_____________