On January 1, a company issues bonds dated January 1 with a par value of $260,000. The bonds mature in 3 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10%. Using the present value factors below, the issue (selling) price of the bonds is:

n=		i=			Present Value of an Annuity			Present value of $1
3		9.0	%			2.5313		0.7722
6		4.5	%			5.1579		0.7679
3		10.0	%			2.4869		0.7513
6		5.0	%			5.0757		0.7462

Multiple Choice

• $260,000.

• $59,386.

• $266,602.

• $253,398.

• $194,012.