Air Destinations Issues Bonds Due in 10 Years with a Stated

Multiple Choice

Air Destinations issues bonds due in 10 years with a stated interest rate of 6% and a face value of $500,000. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds.

A) $537,194.
B) $464,471.
C) $359,528.
D) $500,000.