Question $3$

On January $1,2021,$ TJMusk Co$.$ issued ten$-$year bonds with a face amount of $$5,000,000$ and annual interest of $$400,000.$ The bonds were priced to yield a market rate of interest $10\%.$ Present or future value factors are as follows:

Present value of $1$ for $10$ periods

Present value of an ordinary annuity of $1$ for $10$ periods

Future value of $1$ for $10$ periods

Future value of an ordinary annuity of $1$ for $10$ periods

At $10\%$

$0\mathrm{.}386$

$6\mathrm{.}145$

$2\mathrm{.}594$

$15\mathrm{.}937$

The total issue price of the bonds was

a$.$ $$4,900,000.$

b$.$ $$5,000,000.$

c$.$ $$4,388,000.$

d$.$ None of the above.