$50$ points and $6$ Extra credit points: ESTIMATED TIME $20$ minutes

Calculate the issue price of a bond $($ROUND ANSWERS TO TWO DECIMAL POINTS$)$

On January $1,2020$ Hoerner Co$.$ issued five$-$year bonds with a face value of $$500,000$ and a stated coupon interest rate of $12\%$ payable on July $1$ and January $1.$ The bonds were sold to yield a market rate of $10\%.$ Present value table factors are:

Present value of $1$ for $5$ periods at $10\%$

$\mathrm{.}62092$

Present value of $1$ for $5$ periods at $12\%$

$\mathrm{.}56743$

Future value of $1$ for $5$ periods at $10\%$

$1\mathrm{.}61051$

Future value of $1$ for $5$ periods at $12\%$

$1\mathrm{.}76234$

Present value of $1$ for $10$ periods at $5\%$

$\mathrm{.}61391$

Present value of $1$ for $10$ periods at $6\%$

$\mathrm{.}55839$

Future value of $1$ for $10$ periods at $5\%$

$1\mathrm{.}62889$

Future value of $1$ for $10$ periods at $6\%$

$1\mathrm{.}79085$

Present value of an ordinary annuity of $1$ for $5$ periods at $10\%$

$3\mathrm{.}79079$

Present value of an ordinary annuity of $1$ for $5$ periods at $12\%$

$3\mathrm{.}60478$

Future value of an ordinary annuity of $1$ for $5$ periods at $10\%$

$6\mathrm{.}10510$

Future value of an ordinary annuity of $1$ for $5$ periods at $12\%$

$6\mathrm{.}35285$

Present value of an ordinary annuity of $1$ for $10$ periods at $5\%$

$7\mathrm{.}72173$

Present value of an ordinary annuity of $1$ for $10$ periods at $6\%$

$7\mathrm{.}36009$

Future value of an ordinary annuity of $1$ for $10$ periods at $5\%$

$12\mathrm{.}57789$

Future value of an ordinary annuity of $1$ for $10$ periods at $6\%$

$13\mathrm{.}18079$