Sharmer Company Issues 5%,5-Year Bonds with a Par Value of $1,000,000

Multiple Choice

Sharmer Company issues 5%,5-year bonds with a par value of $1,000,000 and semiannual interest payments.On the issue date,the annual market rate for these bonds is 6%.What is the bond's issue (selling) price,assuming the following factors:

A) $957,355
B) $1,000,000
C) $1,250,000
D) $786,745
E) $1,213,255