Brown Company Is About to Issue $300,000 of 8-Year Bonds

Multiple Choice

Brown Company is about to issue $300,000 of 8-year bonds paying a 12% interest rate with interest payable semiannually. The effective interest rate for such securities is 10%. Below are available time value of money factors.
$\begin{array}{|l|l|l|l|l|}\hline &8 \text { periods, } & 16 \text { periods, } & 8 \text { periods, } & 16 \text { periods, } \\&10 \% & 5 \% & 12 \% & 6 \%\\\hline \text { Present Value of 1 } & 0.46651 & 0.45811 & 0.40388 & 0.39365 \\\hline \text { Future Value of 1 } & 2.14359 & 2.18287 & 2.47596 & 2.54035 \\\hline \text { Present Value of an Annuity of 1 } & 5.33493 & 10.83777 & 4.96764 & 10.10590 \\\hline \text { Future Value of an Annuity of 1 } & 11.43589 & 23.65749 & 12.29969 & 25.67253\\\hline\end{array}$

To the closest dollar, how much can Brown expect to receive for the sale of these bonds?

A) $319,339
B) $229,371
C) $332,513
D) $540,000