A $700, 000, 20-Year, 14% Bond Issue Was Sold to Yield

Essay

A $700, 000, 20-year, 14% bond issue was sold to yield 12%.Interest was payable annually.Actuarial information for 20 periods follows:
$\begin{array}{lll}&12\%&14\%\\\text { Future value of } 1 & 9.646 & 13.743 \\\text { Present value of } 1 & 0.104 & 0.073 \\\text { Future value of annuity of } 1 & 72.052 & 91.02 \\\text { Present value of annuity of } 1 & 7.469 & 6.623\end{array}$
Required:
Compute the amount of cash that was received when the bonds were issued.