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Kalani Corporation is planning to issue bonds with a face value of $504,500 and a...

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Accounting

Kalani Corporation is planning to issue bonds with a face value of $504,500 and a coupon rate of 6 percent. The bonds mature in 10
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.
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): 4 percent.
b. Case B: Market interest rate (annual): 6 percent.
c. Case C: Market interest rate (annual): 8.5 percent.
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