Factors That Allect the Bond Issue Price RIVERE ENTERPRISES is considering the issue of $109,000 face value, ten-year term bonds. The bonds will pay 6% interest each December 31. The current market rate is 6%; therefore, the bonds will be issued at face value. Required: 1. For each of the following situations, indicate whether you believe the company will receive a premium on the bonds or will issue them at a discount or at face value. a. Interest is paid semiannually instead of annually. Face value b. Assume instead that the market rate of interest is 7%; th Discount changes in (a) and (b). Do 2. For each situation in part (1), prove your statement not round intermediate computation and round your final answer Here are some time value of money factors: Present value of an annuity, n=10, i=7%, PV=7.02358 Present value of an annuity, n-20, 3%, PV=14.87747 Present value of a single amount, n=10, i=7%, PVO. Present value of a single amount, n=20, l=3%, PV-0. Proof: Bond Price