Question - Loyd Inc. manufactures cycling equipment. Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $5,000,000 of 11% term corporate bonds on March 1, 2015, maturing on March 1, 2030. Interest is payable each March 1and September 1, with the first interest payment being made on September 1, 2015. At the time of the bond issuance, the market interest rate for similar financial instruments is 8%.
Required: As the controller of the company, determine the selling price of the bonds.