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Enchantment Corporation is planning to issue bonds with a face value of $400,000 and a coupon rate of 4 percent. The bonds mature in four
Enchantment Corporation is planning to issue bonds with a face value of $400,000 and a coupon rate of 4 percent. The bonds mature in four 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) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. 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): 2 percent. c. Case C: Market interest rate (annual): 6 percent. Answer is complete but not entirely correct
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