P10-4 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO 10-2, 10-4, 10-5

Rosh Corporation is planning to issue bonds with a face value of $830,000 and a coupon rate of 10 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1)

Note: Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to nearest whole dollar amount.

Required:

Compute the issue (sales) price on January 1 of this year for each of the following independent cases:

1. Case A: Market interest rate (annual): 10 percent.
2. Case B: Market interest rate (annual): 8 percent.
3. Case C: Market interest rate (annual): 12 percent.