1. On January 2, 2017, Wine Corporation Wishes to issue $6,000,000 (par value) of its 8%, 10-year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10%. Using the interest factors below, compute the amount that Wine will realize from the sale (issuance) of the bonds and clearly state whether it was issued at a discount or premium.

Present value of 1 at 8% for 10 periods 0.4632

Present value of 1 at 10% for 10 periods 0.3855

Present value of an ordinary annuity at 8% for 10 periods 6.7101

Present value of an ordinary annuity at 10% for 10 periods 6.1446

Solve this in an excel document, showing the formulas used, or only half credit will be given