On January 2, 2014, Wine Corporation Wishes to Issue $4,000,000

Multiple Choice

On January 2, 2014, Wine Corporation wishes to issue $4,000,000 (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 Wine will realize from the sale (issuance) of the bonds.

A) $4,000,000
B) $3,508,272
C) $4,000,024
D) $4,424,104