On January 1, current year, Lance Co. issued 4-year bonds with a face value of $850,000 and a stated interest rate of 10% payable semiannually on July 1 and January 1, starting from July 1 of current year. The market rate was 6%. Selected present value table factors are: Present value of 1 for 4 periods at 6% Present value of 1 for 4 periods at 10% Present value of 1 for 8 periods at 3% Present value of 1 for 8 periods at 5% Present value of an ordinary annuity of 1 for 4 periods at 6% Present value of an ordinary annuity of 1 for 4 periods at 10% Present value of an ordinary annuity of 1 for 8 periods at 3% Present value of an ordinary annuity of 1 for 8 periods at 5% .79029 .68301 .78941 .67684 3.46511 3.16986 7.01969 6.46321 Calculate the issue price of the bonds. The equation needed to complete the work is given below. Enter the four missing amounts in the equation to complete the work. Specifically, enter the amount of principal in box (1), enter the factor that should be used for the present value of principal in box (2), enter the periodic interest amount in box (3), and enter the factor that should be used to calculate the present value of interest in box (4). Use the factors provided above. (1.5 points for (1) and 2 points for the others; 7.5 points total) given below. Enter the four missing amounts in the equation to complete the work. Specifically, enter the amount of principal in box (1), enter the factor that should be used for the present value of principal in box (2), enter the periodic interest amount in box (3), and enter the factor that should be used to calculate the present value of interest in box (4). Use the factors provided above. (1.5 points for (1) and 2 points for the others; 7.5 points total) Price of bonds= Present value of Principal + Present value of Interest ( Principal * Factor) + (Periodic Interest * Factor) (1) ? (2) ? (3) ? (4)? Answer: (1): A (2): A (3): A (4)