Dojo Corporation issued $500,000 with a 5 percent stated rate of interest on January 1. The effective rate of interest on that date was 7 percent and interest is paid semiannually on June 30 and December 31. The bonds mature ten years from now. What amount would bondholders be willing to pay Dojo on January 1 for the bonds?

Question 5 options:

	$428,937
	$500,000
	$528,783
	$413,806