What is the bond issue price of a $500,000, ten-year, 12% bond issue sold to yield an effective rate of 10% if interest is paid semiannually? Present Value of $1 PV = FV X Factor Periods 4% 5% 6% 8% 9% 10% 12% 2 0.92456 0.90703 0.89000 0.85734 0.84168 0.82645 0.79719 5 0.82193 0.78353 0.74726 0.68058 0.64993 0.62092 0.56743 6 0.79031 0.74622 0.70496 0.63017 0.59627 0.56447 0.50663 7 0.75992 0.71068 0.66506 0.58349 0.54703 0.51316 0.45235 10 0.67556 0.61391 0.55839 0.46319 0.42241 0.38554 0.32197 11 0.64958 0.58468 0.52679 0.42888 0.38753 0.35049 0.28748 12 0.62460 0.55684 0.49697 0.39711 0.35553 0.31863 0.25668 13 0.60057 0.53032 0.46884 0.36770 0.32618 0.28966 0.22917 14 0.57748 0.505070.44230 0.34046 0.29925 0.26333 0.20462 15 0.55526 0.481020.41727 0.31524 0.27454 0.23939 0.18270 16 0.53391 0.45811 0.39365 0.29189 0.25187 0.21763 0.16312 17 0.51337 0.43630 0.37136 0.27027 0.23107 0.19784 0.14564 18 0.49363 0.41552 0.35034 0.25025 0.21199 0.17986 0.13004 Present Value of $1 PV = FV X Factor Periods 4% 5% 6% 8% 9% 10% 12% 2 0.92456 0.90703 0.89000 0.85734 0.84168 0.82645 0.79719 5 0.82193 0.78353 0.74726 0.68058 0.64993 0.62092 0.56743 6 0.79031 0.74622 0.70496 0.63017 0.59627 0.56447 0.50663 7 0.75992 0.71068 0.66506 0.58349 0.54703 0.51316 0.45235 10 0.67556 0.61391 0.55839 0.46319 0.42241 0.38554 0.32197 11 0.64958 0.58468 0.52679 0.42888 0.38753 0.35049 0.28748 12 0.62460 0.55684 0.49697 0.39711 0.35553 0.31863 0.25668 13 0.60057 0.53032 0.46884 0.36770 0.32618 0.28966 0.22917 14 0.57748 0.50507 0.44230 0.34046 0.29925 0.26333 0.20462 15 0.55526 0.48102 0.41727 0.31524 0.27454 0.23939 0.18270 16 0.53391 0.45811 0.39365 0.29189 0.25187 0.21763 0.16312 17 0.51337 0.43630 0.37136 0.27027 0.23107 0.19784 0.14564 18 0.49363 0.41552 0.35034 0.25025 0.21199 0.17986 0.13004 19 0.47464 0.39573 0.33051 0.23171 0.23171 0.19449 0.16351 0.11611 20 0.45639 0.37689 0.31180 0.21455 0.17843 0.14864 0.10367 8% Present Value of an Ordinary Annuity PV = PMT X Factor Periods 4% 5% 6% 9% 2 1.88609 1.85941 1.83339 1.78326 1.75911 5 4.45182 4.32948 4.21236 3.99271 3.88965 6 5.24214 5.07569 4.91732 4.62288 4.48592 7 6.00205 5.78637 5.58238 5.20637 5.03295 10 8.11090 7.72173 7.36009 6.71008 6.41766 11 8.76048 8.30641 7.88687 7.13896 6.80519 12 9.38507 8.86325 8.38384 7.53608 7.16073 13 9.98565 9.39357 8.85268 7.90378 7.48690 14 10.56312 9.89864 9.29498 8.24424 7.78615 15 11.11839 10.37966 9.71225 8.55948 8.06069 16 11.65230 10.83777 10.10590 8.85137 8.31256 17 12.16567 11.2740710.47726 9.12164 8.54363 18 12.65930 11.68959 10.82760 9.37189 8.75563 19 13.13394 12.08532 11.15812 9.60360 8.95011 20 13.59033 12.46221 11.46992 9.81815 9.12855 10% 1.73554 3.79079 4.35526 4.86842 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 12% 1.69005 3.60478 4.11141 4.56376 5.65022 5.93770 6.19437 6.42355 6.62817 6.81086 6.97399 7.11963 7.24967 7.36578 7.46944 5 4.45182 4.32948 4.21236 6 5.24214 5.07569 4.91732 7 6.00205 5.78637 5.58238 10 8.11090 7.72173 7.36009 11 8.76048 8.30641 7.88687 12 9.38507 8.86325 8.38384 13 9.98565 9.39357 8.85268 14 10.56312 9.89864 9.29498 15 11.11839 10.37966 9.71225 16 11.65230 10.83777 10.10590 17 12.16567 11.27407 10.47726 18 12.65930 11.68959 10.82760 19 13.13394 12.08532 11.15812 20 13.59033 12.46221 11.46992 3.99271 4.62288 5.20637 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 3.88965 4.48592 5.03295 6.41766 6.80519 7.16073 7.48690 7.78615 8.06069 8.31256 8.54363 8.75563 8.95011 9.12855 3.79079 4.35526 4.86842 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 3.60478 4.11141 4.56376 5.65022 5.93770 6.19437 6.42355 6.62817 6.81086 6.97399 7.11963 7.24967 7.36578 7.46944 0 $562.312 $442,650 0 $566,635 0 $425,306