On January 1, 2013, Jason Company Issued $5 Million of 10-Year

Multiple Choice

On January 1, 2013, Jason Company issued $5 million of 10-year bonds at a 10% stated interest rate to be paid annually. The following present value factors have been provided: What was the issuance price of the bonds if the market rate of interest was 8%?
$\begin{array}{cccc}\text { Time Period } &\text { Interest } &\text { PV of } \$ 1 & \text { PV of a } \$ 1 \text { Annuity }\\\hline10 & 10 \% & .386 & 6.145 \\10 & 8 \% & .463 & 6.710 \\10 & 12 \% & .322 & 5.650\end{array}$

A) $5,000,000.
B) $5,670,000.
C) $5,387,500.
D) $5,712,500.