Marwick Corporation Issues 8%,5 Year Bonds with a Par Value

Multiple Choice

Marwick Corporation issues 8%,5 year bonds with a par value of $1,000,000 and semiannual interest payments.On the issue date,the annual market rate for these bonds is 6%.What is the bond's issue (selling) price,assuming the Present Value of $1 factor for 3% and 10 semi-annual periods is .7441 and the Present Value of an Annuity factor for the same rate and period is 8.5302?

A) $1,000,000
B) $789,244
C) $1,341,208
D) $1,085,308
E) $658,792