On January 1, 2018 Fox Co. issued $400,000, 12%, 2-year bonds that pay interest semi-annually, July 1 and January 1. When issued, investors required 6% interest and the bonds are due January 1, 2020. What is the issue price of these bonds?

Use the appropriate present value factors below to answer this Question:

Present Value Factors2%3%4%6%12%

Single sum-2 periods.96117 .94260 .92456 .89000 .79719

Single sum-4 periods.92385 .88849 .85480 .79209 .63552

Ordinary annuity-2 periods1.94156 1.91347 1.88609 1.83339 1.69005

Ordinary annuity-4 periods3.80773 3.71710 3.62990 3.46511 3.03735

Annuity due-2 periods1.98039 1.97087 1.96154 1.94340 1.89286

Annuity due-4 periods3.88388 3.82861 3.77509 3.67301 3.40183

$444,606

$358,417

$533,817

$437,524