Rhode Company Is About to Issue $4,000,000 of 5-Year Bonds

Multiple Choice

Rhode Company is about to issue $4,000,000 of 5-year bonds, with a contract rate of interest of 8%, payable semiannually. The discount rate for such securities is 10%. How much can Rhode expect to receive from the sale of these bonds?

A) $3,691,117
B) $4,000,000
C) $4,324,440
D) $3,308,880