Use the following information for questions 6 and 7:

On January 1, 2018, Daley Co. issued eight-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 8%. Table values are:

Present value of 1 for 8 periods at 6%.627

Present value of 1 for 8 periods at 8%.540

Present value of 1 for 16 periods at 3%.623

Present value of 1 for 16 periods at 4%.534

Present value of annuity for 8 periods at 6%6.210

Present value of annuity for 8 periods at 8%5.747

Present value of annuity for 16 periods at 3%12.561

Present value of annuity for 16 periods at 4%11.652

6.The present value of the principal is

a. $534,000.

b. $540,000.

c. $623,000.

d. $627,000.

7. The present value of the interest is

a.$344,820.

b.$349,560.

c.$372,600.

d.$376,830.