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On January 1, 2017 Lance Co. issued five-year bonds with a face value of $890,000 and a stated interest rate of 14% payable semiannually on
On January 1, 2017 Lance Co. issued five-year bonds with a face value of $890,000 and a stated interest rate of 14% payable semiannually on July 1 and January 1. The bonds were sold to yield 6%. Present value table factors are: Present value of 1 for 6 periods at 6% Present value of 1 for 6 periods at 14% Present value of 1 for 6 periods at 3% Present value of 1 for 12 periods at 796 Present value of an ordinary annuity of 1 for 6 periods at 6% 4.91732 Present value of an ordinary annuity of 1 for 6 periods at 14% 3.88867 Present value of an ordinary annuity of 1 for 6 periods at 3% 9.95400 Present value of an ordinary annuity of 1 for 12 periods at 7% 7.94269 0.70496 0.45559 0.83748 0.44401 Calculate the issue price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,582.) Issue price of bonds s
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