Stech CoIs Issuing $6

Multiple Choice

Stech Co.is issuing $6.5 million 12% bonds in a private placement on July 1, 2015.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) $8,266,764.
B) $13,566,992.
C) $8,244,598.
D) $8,310,962.