On January 1,a Company Issues 8%,5-Year,$300,000 Bonds That Pay Interest

Multiple Choice

On January 1,a company issues 8%,5-year,$300,000 bonds that pay interest semiannually.On the issue date,the annual market rate of interest is 6%.The following information is taken from present value tables: What is the issue (selling) price of the bond?

A) $420,000
B) $402,362
C) $300,010
D) $308,107
E) $325,592