LaTanya Corporation is planning to issue bonds with a face value of $105,000 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, andPVA of $1)

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): 7 percent.

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

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