Question: Sand Explorers issues bonds due in 12 years with a stated interest rate of 9% and a face value of $280,000. Interest payments are made

Sand Explorers issues bonds due in 12 years with a stated interest rate of 9% and a face value of $280,000. Interest payments are made semi-annually. The market rate for this type of bond is 8%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Multiple Choice

$206,146.
$301,346.
$351,129.
$280,000.

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