On January 1, a company issues bonds with a par value of $300,000. The bonds mature in 5 years, and pay 8% annual interest, payable each June 30th and December 31st. On the issue date, the market rate of interest for the bonds is 10%. Compute the price of the bonds on their issue date.

Instructions: Make sure that you indicate what you are using or your number of periods (n or p), what you are using for your interest per period (i), and what factor (f) you are using for your calculation.

The following information is taken from present value tables:

Present value of an annuity for 5 periods at 4% is 4.4518

Present value for an annuity for 5 periods at 5% is 4.3295

Present value of an annuity for 10 periods at 4% is 8.1109

Present value of an annuity for 10 periods at 5% is 7.7217

Present value of 1 for 5 periods at 4% is 0.8219

Present value of 1 for 5 periods is 5% is 0.7835

Present value of 1 for 10 periods at 4% is 0.6756

Present value of 1 for 10 periods at 5% is 0.6139