The Ness Company sells $5,000,000 of five-year, 10% bonds at the start of the year. The bonds have an effective yield of 9%. Present value factors are below:

The bonds will sell for:

(a) $4,805,525

(b) $5,000,000

(c) $5,050,000

(d) $5,194,475

PV $1 factor 1 year PV $1 factor 2 years PV $1 factor 3 years PV $1 factor 4 years PV $1 factor 5 years 10% 9% 0.90909 0.91743 0.82645 0.84168 0.75131 0.77218 0.68301 0.70843 0.62092 0.64993