Question: On January 1, 20A, A-Ace Corp. issued $3,000,000 par value 12%, 10 year bonds which pay interest each December 31. The market rate of interest

On January 1, 20A, A-Ace Corp. issued $3,000,000 par value 12%,

On January 1, 20A, A-Ace Corp. issued $3,000,000 par value 12%, 10 year bonds which pay interest each December 31. The market rate of interest was 14%, the issue price of the bonds should be? (The present value factor for $1 in 10 periods at 12% is .3220 and at 14% is .2697. The present value of an annuity of $1 factor for 10 periods at 12% is 5.6502 and at 14% is 5.2161.) $3, 339, 084 $2, 843, 172 $3,000,000 $2, 686, 896 None of the above is correct

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