Reed Corp Sells $500,000 of Bonds to Private Investors

Multiple Choice

Reed Corp. sells $500,000 of bonds to private investors. The bonds are due in five years, have a 6% coupon rate, and interest is paid semiannually. The bonds were sold to yield 4%.
What proceeds does Reed receive from the investors?

A) $544,913
B) $474,345
C) $526,948
D) $499,999
E) None of the above