On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 3 years. The contract rate is 6%, and interest is paid semiannually on June 30 and December 31. The market rate is 7%. Using the present value factors below, the issue (selling) price of the bonds is: n= Present Value of an Annuity (series of payments) 2.6730 5.4172 2.6243 5.3286 3 i= 6.0% 3.0% 7.0% 3.5% Present value of 1 (single sum) 0.8396 0.8375 0.8163 0.8135 6 3 6