On July 1, Year 1, Danzer Industries Inc. issued $1,300,000 of 6-year, 9% bonds at a market (effective) interest rate of 11%, receiving cash of $1,187,957. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

5. Compute the price of $1,187,957 received for the bonds. (Round you PV values to 5 decimal places and the final answers to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences.

Present value of the face amount $

Present value of the semi-annual interest payments

$ Price received for the bonds $