Exercise 144 On January 1, 2017 Lance Co issued five year bonds with a face value of $890,000 and a stated interest rate of 14 payable semiannually on July 1 and January 1 The bonds were sold to yield 12 Present value table factors are Present value of 1 for 4 periods at 12 0 63552 Present value of 1 for 4 periods at 14 0 59208 Present value of 1 for 12 periods at 6 0 49697 Present value of 1 for 8 periods at 7 0 58201 Present value of an ordinary annuity of 1 for 4 periods at 12 3 03735 Present value of an ordinary annuity of 1 for 4 periods at 14 2 91371 Present value of an ordinary annuity of 1 for 12 periods at 6 6 20979 Present value of an ordinary annuity of 1 for 8 periods at 7 5 97130 Calculate the issue price of the bonds (Round factor values to 5 decimal places, e g 1 25124 and final answer to 0 decimal places, e g 458,582 ) Issue price of bonds $

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Question: Exercise 144 On January 1, 2017 Lance Co. issued five-year bonds with a face value of $890,000 and a stated interest rate of 14% payable

Exercise 144

On January 1, 2017 Lance Co. issued five-year bonds with a face value of $890,000 and a stated interest rate of 14% payable semiannually on July 1 and January 1. The bonds were sold to yield 12%.

Present value table factors are:
Present value of 1 for 4 periods at 12%		0.63552
Present value of 1 for 4 periods at 14%		0.59208
Present value of 1 for 12 periods at 6%		0.49697
Present value of 1 for 8 periods at 7%		0.58201
Present value of an ordinary annuity of 1 for 4 periods at 12%		3.03735
Present value of an ordinary annuity of 1 for 4 periods at 14%		2.91371
Present value of an ordinary annuity of 1 for 12 periods at 6%		6.20979
Present value of an ordinary annuity of 1 for 8 periods at 7%		5.97130

Calculate the issue price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,582.)

Issue price of bonds

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