Question: Reed Corp. sells $ 4 2 0 , 0 0 0 of bonds to private investors. The bonds are due in five years, have a

Reed Corp. sells $420,000 of bonds to private investors. The bonds are due in five years, have a 4% coupon rate and interest is paid semiannually. The bonds were sold to yield 6%. What proceeds does Reed receive from the investors?
Select one:
a.
$457,395
b.
$384,616
c.
$457,727
d.
$384,173
e.
None of these are correct.

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