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On January 1, 2007, Guardiola, Inc. sold 8% bonds with a face value of $600,000....

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Accounting

On January 1, 2007, Guardiola, Inc. sold 8% bonds with a face value of $600,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold to yield 10% (i.e., effective yield is 10%). The selling price of this bond is:

a. $598,310

b. $605,020

c. $589,124

d. $553,667

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