Haste Enterprises issues 12-year, $1,000,000 bonds that pay semiannual interest of $40,000. If the effective annual rate of interest is 10%, what is the issue price of the bonds? Some relevant and irrelevant present value factors: * PV of ordinary annuity of $1: n = 12; i = 10% is 6.81369 **PV of $1: n = 12; i = 10% is 0.31863 * PV of ordinary annuity of $1: n = 24; i = 5.0% is 13.79864 **PV of $1: n = 24; i = 5.0% is 0.31007 Multiple Choice

$862,016.

$919,016.

$1,000,000.

$1,551,946.