On January 1, 2018, Fox, Inc. issued 500, $1,000 bonds. The bonds are 5-year, 6% bonds that pay interest on December 31 each year. When issued, investors required 4% interest and the bonds are due December 31, 2022. The selling price of this bond is the ________.

Present value of $500,000 par value plus the present value of the $20,000 interest payments

$500,000 par value of the bond

Present value of $500,000 par value minus the present value of the $20,000 interest payments

Present value of $500,0