On January 1, a company issues bondsss with a par vaule of $300,000. The bonds maure in 5 yrs, and pay 8% annual interst, payable each June 30 amd December 31. On the issue date, the marke rate of interest for the bonds is 10%. Compute the price on their issance date:
Present value of an annuity for 10% periods at 4% 8.110
Present value of an annuity for 10% periods at 5% 7.7217
Present value of 1 for 10 periods at 4% 0.6756
Present value 1 for 10 peroids at 5%
