Question - On January 1, 2008, Langly Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:
Present value of 1 for 10 periods at 10% 0.386
Present value of 1 for 10 periods at 12% 0.322
Present value of 1 for 20 periods at 5% 0.377
Present value of 1 for 20 periods at 6% 0.312
Present value of annuity for 10 periods at 10% 6.145
Present value of annuity for 10 periods at 12% 5.650
Present value of annuity for 20 periods at 5% 12.462
Present value of annuity for 20 periods at 6% 11.470
Instructions: Calculate the issue price of the bonds.