Haste Enterprises issues 16-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 = 16; i = 10% is 7.82371 **PV of $1: n = 16; i = 10% is 0.21763 * PV of ordinary annuity of $1: n = 32; i = 5.0% is 15.80268 **PV of $1: n = 32; i = 5.0% is 0.20987

Multiple Choice

• $841,977.

• $902,977.

• $1,000,000.

• $1,632,107.