On January 1, 2018, Satin Corp. issued eight-year, 6% bonds with a face value of $500,000, with interest payable semi-annually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% .627 Present value of 1 for 8 periods at 8% .540 Present value of 1 for 16 periods at 3% .623 Present value of 1 for 16 periods at 4% .534 Present value of annuity for 8 periods at 6% 6.210 Present value of annuity for 8 periods at 8% 5.747 Present value of annuity for 16 periods at 3% 12.561 Present value of annuity for 16 periods at 4% 11.652

1. The present value of the principal is a) $267,000. b) $270,000. c) $311,500.

d) $313,500.

2. The present value of the interest is a) $172,410. b) $174,780. c) $186,300.

d) $188,415.

3. The issue price of the bonds is a) $441,780. b) $442,410. c) $444,780.

d) $499,800.