What is the bond issue price for santiago corp

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Reference no: EM133000130

Santiago Corp. issued ten (10) year bonds having the following characteristics:

Issue Date: 1/1/2020

Due Date: 12/31/2029

Face Value: $500,000

Face Interest Rate: 4% compounded semi-annually

Market Interest Rate: 6% compounded semi-annually

Interest payment dates: June 30 and Dec 31 beginning 6/30/2020

Problem 1: What is the bond's issue price? Round to the nearest whole dollar.

Select one:

a. $425,613

b. $574,387

c. $352,798

d. $148,775

e. $276,838

Reference no: EM133000130

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