Thank you.

Haste Enterprises issues 16-year, $1,000,000 bonds that pay semiannual interest of $50,000. If the effective annual rate of interest is 12%, what is the issue price of the bonds? Some relevant and irrelevant present value factors: * PV of ordinary annuity of $1: n = 16; i = 12% is 6.97399 **PV of $1: n = 16; i = 12% is 0.16312 * PV of ordinary annuity of $1: n = 32; i = 6.0% is 14.08404 **PV of $1: n = 32; i = 6.0% is 0.15496

Multiple Choice

• $859,162.

• $927,495.

• $1,000,000.

• $1,704,202.