E$10-4($Algo$)$ Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium L$010-2,10-4,$

$10-5$

Kalani Corporation is planning to issue bonds with a face value of $$509,500$ and a coupon rate of $6$ percent. The bonds mature in $15$

years and pay interest semiannually every June $30$ and December $31.$ All of the bonds will be sold on January $1$ of this year. $($FV of $$1,$

PV of $$1$ i FVA of $$1,$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Required:

Compute the issue $($sales$)$ price on January $1$ of this year for each of the following independent cases:

a$.$ Case A: Market interest rate $($annual$)$: $4$ percent.

b$.$ Case B: Market interest rate $($annual$)$: $6$ percent.

c$.$ Case C: Market interest rate $($annual$)$: $8\mathrm{.}5$ percent.

Complete this question by entering your answers in the tabs below.

Compute the issue $($sales$)$ price on January $1$ of this year for the following independent case:

Case A: Market interest rate $($annual$)$: $4$ percent. $($Round your intermediate calculations and final answer to whole dollars.$)$