Seaside issues a bond that has a stated interest rate of 7%, face amount of $40,000, and is due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 10%. What is the issue price of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Multiple Choice

• $62,274.

• $34,683.

• $65,914.

• $40,000.