Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium

Kalani Corporation is planning to issue bonds with a face value of $$500,000$ and a coupon rate of $6$ percent. The bonds mature in $10$

years and pay interest semiannually every June $30$ and December $31.$ All of the bonds will be sold on January $1$ of this year.

Required:

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

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$)$: $8\mathrm{.}5$ percent.