On 1/1/16,Lantana Loan Co.,a calendar-year company,accepts a 5%,$500,000 three-year loan that pays interest semi-annually on 6/30 and 12/31 from Diamond Distributors,when the market rate of interest was 10%.In exchange for the note,Diamond agrees to make semi-annual interest payment and repay the full $500,000 at maturity.How much cash will Diamond receive in exchange for this note?
A) $500,000
B) $568,852
C) $437,829
D) $436,554
Correct Answer:
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