LaTanya Corporation is planning to issue $260,000, five-year, 5 percent bonds. Interest is payable semi-annually each June 30 and December 31. All of the bonds will be sold on July 1, year 1; they mature on June 30, year 6. Use Table 8C.1, Table 8C.2.
Required: Compute the issue (sale) price on July 1, year 1, if the market interest rate is: (Round time value factor to 4 decimal places. Round the final answers to the nearest dollar amount.)
Issue price: $259,990, $260,003, $260,002
(a) 5 percent
(b) 2 percent
(c) 6 percent