Bubs Corporation is planning to issue bonds with a face value of $506,500 and a coupon rate of 6 percent. The bonds mature in 15 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1)

Compute the issue (sales) price on January 1 of this year for each of the following independent cases:

Case A: Market interest rate (annual): 8.5%

Case B: Market interest rate (annual): 4%

What are the issue prices for each case?