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E10-3 Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO010-2,10-4,10-5 LaTanya Corporation is planning to issue bonds with
E10-3 Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO010-2,10-4,10-5 LaTanya Corporation is planning to issue bonds with a face value of $104,500 and a coupon rate of 8 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 S1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the issue (sale) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate (annual): 8 percent. Issue price Issue price c. Case C: Market interest rate (annual): 9 percent. ssue price
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