Marwick Corporation issues 8%, 5 year bonds with a par value of $1,100,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the following Present Value factors:

n=		i=			Present Value of an Annuity			Present value of $1
5		8	%			3.9927		0.6806
10		4	%			8.1109		0.6756
5		6	%			4.2124		0.7473
10		3	%			8.5302		0.7441

Multiple Choice

$1,100,000

$889,244

$1,475,329

$1,193,839

$724,671