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On January 2, 2020, Oriole Company wishes to issue $6300000 (par value) of its 8%, 10-year bonds

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On January 2, 2020, Oriole Company wishes to issue $6300000 (par value) of its 8%, 10-year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10%. Using the interest factors below, compute the amount that Oriole will realize from the sale (issuance) of the bonds.

Present value of 1 at 8% for 10 periods

0.4632Present value of 1 at 10% for 10 periods

0.3855Present value of an ordinary annuity at 8% for 10 periods

6.7101Present value of an ordinary annuity at 10% for 10 periods

6.1446

$6300000

$5525528

$6300038

$6967964