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The Ness Company sells $5,000,000 of five-year, 10% bonds at the start of the year. The bonds have an effective yield of 9%. Present value factors...

The Ness Company sells $5,000,000 of five-year, 10% bonds at the start of the year.  The bonds have an effective yield of 9%.  Present value factors are below:
10% 9%
PV factor 1 year 0.90909 0.91743
PV factor 2 years 0.82645 0.84168
PV factor 3 years 0.75131 0.77218
PV factor 4 years 0.68301 0.70843
PV factor 5 years 0.62092 0.64993
The bond carrying value at the end of Year 1 is

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