Reed Corp Sells $700,000 of Bonds to Private Investors

Multiple Choice

Reed Corp. sells $700,000 of bonds to private investors. The bonds are due in five years, have a 4% coupon rate and interest is paid semiannually. The bonds were sold to yield 6%.
What proceeds does Reed receive from the investors?

A) $600,000
B) $574,409
C) $640,289
D) $523,227
E) None of the above