Gordon Corporation issued $400,000 par value, 2%, 5 --year bonds on January 1, 2019. The bonds mature on December 31, 2023 and pay semi annual interest. The market rate on the date of issue 4%. Gordon has elected to use the straight line method for discount amortization. What is the bond issue price for the Gordon bonds?

a. $364,070

b. $335,113

c. $437,885

d. $400,000

The answer is $364,070 but I don't know how to get the answer.