Answer:
The correct option is B,$2,631,204
Explanation:
The amount Wine corporation would realize from the sale of the bonds is the present value of all cash flows payable by the bond which includes the annual interest payments as well as the principal repayment in 10 years.
amount of interest payment=$3,000,000*8%=$240,000
The $240,000 would be received by investors for 10 years
The principal is the face value of $3000,000 payable in year ten
Present of face value=$3,000,000*0.3855=$1156500
present value of all interest payments=$240,000*6.1446=$1474704
Total present values=$1474704
+1156500
=$2631204
