On January 1, a company issues bonds dated January 1 with a par value of $280,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8%. 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		7.0	%			2.6243		0.8163
6		3.5	%			5.3286		0.8135
3		8.0	%			2.5771		0.7938
6		4.0	%			5.2421		0.7903