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

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 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 of $ 1 at 8% for 10 years is 6.7101. Which of the following is closest to the selling price of the bond?
a. $ 920,000
b. $ 1,000,000
c. $ 1,040,800
d. $ 1,067,100

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