On July 1, 2021, Alabama Company issued 10% bonds dated July 1, 2021, with a face amount of $20 million. The bonds mature in 10 years. For bonds of similar risk and maturity, the market yield is 11%. Interest is paid semiannually, on June 30th and December 31st.

The issue price of the bonds on July 1, 2021 is closest to:

A)

$20,000,0

00

B)

$18,822,060

C)

$18,993,980

D)

$18,804,980