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Waterway Company issues $25200000, 5%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December

Waterway Company issues $25200000, 5%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 4%. What are the proceeds from the bond issue?

ff 2.0% 2.5% 4% 5%
Present value of a single sum for 5 periods

0.90573

0.88385 0.82193 0.78353
Present value of a single sum for 10 periods 0.82035 0.78120 0.67556 0.61391
Present value of an annuity for 5 periods 4.71346 4.64583 4.45182 4.32948
Present value of an annuity for 10 periods 8.98259 8.75206 8.11090 7.72173

Options:

$26320277

$26324347

$26331852

$25200000

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