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Texxon Corporation issued $500,000 of 8%, 10-year bonds. Interest is paid semiannually. Assume that the market rate for similar investments is 6 percent. What is

Texxon Corporation issued $500,000 of 8%, 10-year bonds. Interest is paid semiannually. Assume that the market rate for similar investments is 6 percent.

  1. What is the present value (issue price) of this bond issue at the market rate of interest?

a. $587,798

b. $523,642

c. $574,540

d. $568,720

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