LaTanya Corporation is planning to issue bonds with a face value of $101,000 and a coupon...

LaTanya Corporation is planning to issue bonds with a face value of $101,000 and a coupon rate of 6 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) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the issue (sale) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate (annual): 6 percent. b. Case B: Market interest rate (annual): 4 percent c. Case C: Market interest rate (annual): 7 percent.

Expert Solution

A : ISSUE PRICE :100992

B: ISSUE PRICE :113132

C : ISSUE PRICE :95580

jeff jeffy answered 1 year ago

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