On January 1, 20X1, Tanner Co. issued eight-year bonds with a face value of $2,000,000 and a stated interest rate of 5%, payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. Table values are:

The present value of the interest is

Question 12 options:

	$640,000.
	$248,400.
	$502,440.
	$496,800.

Present value of 1 for periods at 6%. Present value of 1 for 8 periods at 8% Present value of 1 for 16 periods at 3%. Present value of 1 for 16 periods at 4%.......... Present value of annuity for 8 periods at 6% Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 periods at 4%. .627 .540 .623 .534 6.210 5.747 12.561 11.652