Gnome Shelters issued 80 $10,000 bonds 9% 10-year bonds on July 1, 20X1. The bonds pay interest semi-annually on January 1 and July 1. What is the fair value of the bond on July 1, 20X1 if the market rate of interest is 11.3%

Periods	Interest	PV of 1	PV of Ordinary Annuity	PV of Annuity due
10	9%	0.4224	6.4177	6.9952
10	11.3%	0.3428	5.8159	6.4731
20	9%	0.4146	13.0079	13.5933
20	11.3%	0.3331	11.8031	12.4699
Periods	Interest	FV of 1	FV of Ordinary Annuity	FV of Annuity due
10	9%	2.3674	15.1929	13.020
10	11.3%	2.9171	6.9655	5.3446
20	9%	2.4117	31.3714	29.0636
20	11.3%	3.0018	35.4311	33.5898

• A.

  $800,000

• B.

  $691,392

• C.

  $692,988

• D.

  $715,396