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 carrying value of the bonds after the first semi-annual interest payment date?

a. $571,776.20

b. $572,676.50

c. $570,813.00

d. $573,049.20