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E10-3(Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a...

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Accounting

E10-3(Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO10-2,10-4,10-5
LaTanya Corporation is planning to issue bonds with a face value of $100,500 and a coupon rate of 7 percent. The bonds mature in seven years. Interest is paid annually on 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.
Required:
Compute the issue (sales) price on January 1 of this year for each of the following independent cases:
a. Case A: Market interest rate (annual): 7 percent.
b. Case B: Market interest rate (annual): 5 percent.
c. Case C: Market interest rate (annual): 8 percent
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