Marwick Corporation Issues 8%,5-Year Bonds with a Par Value of $1,000,000

question 125

Multiple Choice

Marwick Corporation issues 8%,5-year bonds with a par value of $1,000,000 and semiannual interest payments.On the issue date,the annual market rate for these bonds is 6%.What is the bond's issue (selling) price,assuming the following Present Value factors:

• A)$1,000,000
• B)$789,244
• C)$1,341,208
• D)$1,085,308
• E)$658,792

---

Definitions:

Inhalation

The act of breathing in, which allows air or other substances to enter the lungs.

Upward

A direction or movement toward a higher position or place.

Bronchioles

The small airway passages in the lungs that extend from the bronchi and lead to the air sacs (alveoli).

Capillaries

The smallest blood vessels in the body, responsible for the exchange of various substances between the blood and surrounding tissues.