Haste Enterprises issues 10-year, $1,000,000 bonds that pay semiannual interest of $45,000. If the effective annual rate of interest is 11%, what is the issue price of the bonds? Some relevant and irrelevant present value factors: * PV of ordinary annuity of $1: n = 10; i = 11% is 5.88923 **PV of $1: n = 10; i = 11% is 0.35218 * PV of ordinary annuity of $1: n = 20; i = 5.5% is 11.95038 **PV of $1: n = 20; i = 5.5% is 0.34273

Multiple Choice

• $939,588.

• $1,537,767.

• $880,497.

• $1,000,000.