Question - On January 1, Year 1, Congo.com issued $1,000,000, 9% 10-year bonds (interest paid annually) to yield 8%. The present value of $1 at 9% for 10 years is 0.4224 and the present value of an ordinary annuity of $1 at 9% for 10 years is 6.4177. The present value of $1 at 8% for 10 years is 0.4632 and the present value of an ordinary annuity of $1 at 8% for 10 years is 6.7101. Determine the selling price of the bond?
$920,000
$1,000,000
$1,040,800
$1,067,100