Question 27

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Cottle Corporation issued $600,000 of 15-year bonds on January 1. The bonds pay interest on January 1 and July 1 with a stated annual rate of 8 percent. If the market rate of annual interest at the time the bonds are sold is 6 percent, what will be the issue price of the bonds? (If PV tables are used, select the closest answer from the options provided.)

Select one:

A. $496,116

B. $702,564

C. $717,603

D. $665,214