On January 1,a Company Issues 8%,5-Year,$300,000 Bonds That Pay Interest

On January 1,a company issues 8%,5-year,$300,000 bonds that pay interest semiannually each June 30 and December 31.On the issue date,the annual market rate of interest is 6%.Compute the price of the bonds on their issue date.The following information is taken from present value tables:
$\begin{array}{|l|l|}\hline\text { Present value of an annuity for } 10 \text { periods at } & 8.5302 \\3 \%& \\\hline \text { Present value of an annuity for } 10 \text { periods at } & 8.1109 \\4 \%&\\\hline \text {Present value of 1 due in 10 periods at}\\ 3 \% &0.7441\\\hline \text {Present value of 1 due in 10 periods at }\\4 \% &0.6756\\\hline\end{array}$

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