Chenard Company Is About to Issue $3,000,000 of 8-Year Bonds

Multiple Choice

Chenard Company is about to issue $3,000,000 of 8-year bonds paying a 12% interest rate with interest payable semiannually. The discount rate for such securities is 10%. Below are time value of money factors that Chenard uses to calculate compounded interest. $$\begin{array} { | l | c | c | r | r | } \hline & \begin{array} { c } 8 \text { periods, } \\10 \%\end{array} & \begin{array} { c } 16 \text { periods, } \\5 \%\end{array} & \begin{array} { c } 8 \text { periods, } \\12 \%\end{array} & \begin{array} { c } 16 \text { periods, } \\6 \%\end{array} \\\hline \text { Present value 1 } & 0.46651 & 0.45811 & 0.40388 & 0.39365 \\\hline \text { Future value 1 } & 2.14359 & 2.18287 & 2.47596 & 2.54035 \\\hline \text { Present value of an annuity of 1 } & 5.33493 & 10.83777 & 4.96764 & 10.10590 \\\hline \text { Future value of an annuity of 1 } & 11.43589 & 23.65749 & 12.29969 & 25.67253 \\\hline\end{array}$$ To the closest dollar, how much can Chenard expect to receive for the sale of these bonds?

A) $3,193,390
B) $2,293,710
C) $3,325,130
D) $5,400,000