E$10-3($Algo$)$ Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO$10-2,10-4,10-5$

LaTanya Corporation is planning to issue bonds with a face value of $$100,500$ and a coupon rate of $7$ percent. The bonds mature in seven years. Interest is paid annually on December $31.$ All of the bonds will be sold on January $1$ of this year. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

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:

Case A: Market interest rate $($annual$)$: $7$ percent.

Case B: Market interest rate $($annual$)$: $5$ percent.

Case C: Market interest rate $($annual$)$: $8$ percent.