Question: Note to Student To answer this question, you may use either the factor tables located at the back of your textbook or the factor tables

Note to Student To answer this question, you may use either the factor tables located at the back of your textbook or the factor tables located at the bottom of this problem On January 1, 20X1, Pack Corp. issues five-year bonds with a face value of $400,000 and a stated interest rate of 8%, payable semiannually on June 30 and December 31 At the time of the issue, the market rate for bonds of similar risk and maturity is 6% QUESTION: Rounded to the nearest whole dollar, what should be the bonds'issue pnce? ANSWER: S Inote: do not use commas or decimal points in your answer) Factor Tables Present Value (PV) of S1 5% SSR19 82035 67297 .60953 55207 45289 3% 74409 55368 .47761 .41199 30656 .67556 45639 37512 .30832 20829 .61391 37689 29530 23138 14205 31180 23300 17411 09722 Present Value of an Ordinary Annuity (PVA) of S1 2% 108.98259 20 16 35143 25 19.52346 30 22.39616 10 27 15548 8.53020 14.87747 17.41315 19.60014 23.11477 194 8.11090 13.59033 15.62208 17.29203 19.79277 5% 7.721737 12.46221 14.09394 15.37245 17.15909 .36009 11.46992 12.78336 13.76183 15.04630

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