Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds have a $26,000 par value and an annual contract rate of 12%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.)

Required:

Consider each of the following three separate situations.

1.	The market rate at the date of issuance is 12%.

(a)

Complete the below table to determine the bonds' issue price on January 1, 2013. TABLE VALUES ARE BASED ON: n = _________________ i = _________________ CASH FLOW TABLE VALUE AMOUNT PRESENT VALUE par (maturity) value ______________ _____________ ______________ Interest (annuity) _______________ _ _____________ ______________ Price of bonds _______________