On January 1, 2018, Ellison Co.issued 2-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 7%. 1. The present value of the principal is a. $838,561 b. $854,804. C. $871,442 d. $None. 2. The present value of the interest is a. $344,820. b. $107,626 c. $108,897 d. None. 3. The issue price of the bonds is a. $981,635. b. $884,820. c. $946.187 R SONY