Question - Marwick Corporation issues 20%, 5 year bonds with a par value of $1,120,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 18%. What is the bond's issue (selling) price, assuming the Present Value of $1 factor for 9.0% and 10 semi-annual periods is 0.4224 and the Present Value of an Annuity factor for the same rate and period is 6.4177?
$1,120,000
$909,244
$1,838,782
$1,191,870
$401,218