On January 2, 2007, Yenn Corporation Wishes to Issue $2,000,000

Multiple Choice

On January 2, 2007, Yenn Corporation wishes to issue $2,000,000 (par value) of its 8%, 10-year bonds.The bonds pay interest annually on January 1.The current yield rate on such bonds is 10%.Using the interest factors below, compute the amount that Yenn will realize from the sale (issuance) of the bonds. $\begin{array} { l } \text {Present value of 1 at \( 8 \% \) for 10 periods }&0.4632\\ \text {Present value of 1 at \( 10 \% \) for 10 periods }&0.3855\\ \text { Present value of an ordinary annuity at \( 8 \% \) for 10 periods }&6.7101\\ \text { Present value of an ordinary annuity at \( 10 \% \) for 10 periods}&6.1446\\\end{array}$

A) $2,000,000
B) $1,754,136
C) $2,000,012
D) $2,212,052