1. On January 1, 2014, Giamartino, Inc. issues a 4-year bond with a face value of $100,000. The semi-annual interest payments of $6,000 are due July 1 and January 1 of each year.

Coupon Rate (or Stated Rate)	12%
Market Interest Rate at Issuance	10%

Discount Rate	No. of Periods/No. of Payments	Time Value Factor Present Value of $1 Lump Sum	Time Value Factor Present Value of Ordinary Annuity
12%	4	0.6355	3.0373
10%	4	0.6830	3.1699
6%	8	0.6274	6.2098
5%	8	0.6768	6.4632

What is the present value of the bond on the date of issuance?