On January 1, 2024, X Company issued ten-year $10,000 bonds with a stated interest rate of 10%, payable semiannually on June 30 and December 31. The market rate was 12%.

Table values

Present value of 1 (n = 20; i = 6%) = 0.312

Present value of ordinary annuity (n = 20; i = 6%) = 11.470

Calculate the total issue price of the bonds. Choose the closest answer.

Select one:

a.

$14,590

b.

$10,000

c.

$8,855

d.

$3,120