Moore Industries Manufactures Exercise Equipment

Multiple Choice

Moore Industries manufactures exercise equipment.Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's exercise equipment.After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,000,000 of 11% bonds on March 1, 2015, due on March 1, 2030, with interest payable each March 1 and September 1.At the time of issuance, the market interest rate for similar financial instruments is 10%.What is the selling price of the bonds?

A) $3,330,000
B) $1,904,664
C) $3,230,594
D) $2,536,455