Question: Hard * * On January 1 , 2 0 2 4 , James Bond Inc. issued bonds with a par value of $ 1 ,

Hard ** On January 1,2024, James Bond Inc. issued bonds with

Hard **
On January 1,2024, James Bond Inc. issued bonds with a par value of $1,000,000 that mature in 4 years. The interest on the bond is paid semi-annually, on June 30 and December 31 of every year. The annual coupon rate is 4% in the first two years and 6% in the subsequent two years. The annual market interest rate for similar bonds is 5%.
The present value of the bond is closest to:
1.$1,156,203.
2. $998,231.
3.$1,000,000.
4.$994,556.
a par value of $1,000,000 that mature in 4 years. The interest

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