Note to Student: To answer this question, you may use either the factor tables located at the back of your textbook or the factor tables located at the bottom of this problem. On January 1, 20X1, Pack Corp. issues five-year bonds with a face value of $450,000 and a stated interest rate of 4%, payable semiannually on June 30 and December 31. At the time of the issue, the market rate for bonds of similar risk and maturity is 8%. QUESTION: Rounded to the nearest whole dollar, what should be the bonds' issue price? ANSWER: $ (note: do not use commas or decimal points in your answer) Factor Tables Present Value (PV) of $1 n/i 10 20 25 30 40 2% .82035 .67297 .60953 .55207 .45289 3% .74409 .55368 .47761 .41199 .30656 4% .67556 .45639 .37512 .30832 .20829 5% .61391 .37689 .29530 .23138 .14205 6% .55839 .31180 .23300 .17411 .09722 Present Value of an Ordinary Annuity (PVA) of $1 n/i 10 20 25 30 40 2% 8.98259 16.35143 19.52346 22.39646 27.35548 3% 8.53020 14.87747 17.41315 19.60044 23.11477 4% 8.11090 13.59033 15.62208 17.29203 19.79277 5% 7.72173 12.46221 14.09394 15.37245 17.15909 6% 7.36009 11.46992 12.78336 13.76483 15.04630