A company issues bonds with a par value of $340,000. The bonds mature in 5 years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%. Compute the price of the bonds on their issue date. The following information is taken from present value tables: Present value of an annuity (series of payments) for 10 periods at 4% Present value of an annuity (series of payments) for 10 periods at 5% Present value of 1 (single sum) due in 10 periods at 4% Present value of 1 (single sum) due in 10 periods at 5% Table Values are Based on: n= j= Cash Flow Par (maturity) value Interest (annuity) Price of bonds Table Value Amount . Present Value 8.1109 7.7217 0.6756 0.6139

A company issues bonds with a par value of $340,000. The bonds mature in 5 years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%. Compute the price of the bonds on their issue date. The following information is taken from present value tables