Stech CoIs Issuing $2

Multiple Choice

Stech Co.is issuing $2.6 million 12% bonds in a private placement on July 1, 2010.Each $1,000 bond pays interest semi-annually on December 31 and June 30 of each year.The bonds mature in ten years.At the time of issuance, the market interest rate for similar types of bonds was 8%.What is the expected selling price of the bonds?

A) $3,306,705.
B) $5,426,797.
C) $3,297,839.
D) $3,324,385.