Question: On July 1, 2013 Simba Company issued 10% bonds dated July 1 ,2013 with a face amount of $20 million. The bonds mature in 10

On July 1, 2013 Simba Company issued 10% bonds dated July 1 ,2013 with a face amount of $20 million. The bonds mature in 10 years. For bonds similar in risk and maturity, the market yield is 11%. Interest is paid semianually, on June 30 and December 31.

The issue price of the bonds on July 1, 2013 is closest to

A)$18,804,980

B)$20,000,000

C)$18,822,060

D)$18,993,980

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