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Calani 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
Calani 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 eears and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. V of $1, FVA of $1, and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate (annual): 4 percent. b. Case B: Market interest rate (annual): 6 percent. c. Case C: Market interest rate (annual): 8.5 percent. Complete this question by entering your answers in the tabs below. Compute the issue (sales) price on January 1 of this year for the following independent case: Case A: Market interest rate (annual): 4 percent. (Round your intermediate calculations and final answer to whole dollars.)
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