On January 1, 2016, Sigma Inc. issued a $250,000, 10 percent, five-year bond. Interest is payable on June 30 and December 31. The market rate of interest at the time the bonds are sold is 12 percent. What was the issuance price of the bonds?

Ans: ___________________

Stated rate = 10%/2 =5%

Market rate = 12%/2 = 6%

Interest payment = 250,000 * 5% = 12,500

N = 5*2 = 10

Issuance price = 250,000 * 0.558 + 250,000 * 5% * 7.360 = 139,500 + 92,000 = 231,500

This is hte correct answer, but can someone explain how you get the .558 and the 7.360?