LaTanya Corporation is planning to issue bonds with a face value of $100 000 and a coupon rate of 8 percent. The bonds mature in seven years. Interest is paid annually on December 31. All the bonds will be sold on January 1 of this year.

Required:

Compute the issue (sales) price on January 1 of this year for each of the following independent cases (show computations):

1. Case A: Market interest rate (annual): 8 percent
2. Case B: Market interest rate (annual): 6 percent
3. Case C: Market interest rate (annual): 9 percent