Coronado Inc. manufactures cycling equipment. Recently, the vice
president of operations of the company has requested construction
of a new plant to meet the increasing demand for the company’s
bikes. After a careful evaluation of the request, the board of
directors has decided to raise funds for the new plant by issuing
$3,201,000 of 9% term corporate bonds on March 1, 2020, due on
March 1, 2035, with interest payable each March 1 and September 1,
with the first interest payment on September 1st, 2020. At the time
of issuance, the market interest rate for similar financial
instruments is 8%.
As the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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