Frye company issued $700,000, 10%, 3 year bonds on January 1, 2017. Interest is payable annually on December 31. Frye uses the effective-interest method of amortization and has a calendar year end and the bonds were issued for an effective interest rate of 8%.

The selling price of the bond on January 1, 2017 is

a. $736,078

My question for this is how did the answer turn out to be 736,078? Can someone please show the steps involved to get this number? Its 700,000 * PV which is .79383 but when you multiply them together you get 555,683. Can someone please help me with the steps to get to the correct answer.