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

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:
$\begin{array}{l|l}\text { Present value of an annuity for } 10 \text { periods at } & 8.5302 \\3 \% \ldots \ldots . & \\\hline \begin{array}{l} \text { Present value of an annuity for } 10 \text { periods at } \\4 \% \ldots \ldots . . .\end{array} & 8.1109\\\hline \begin{array}{l}\text { Present value of } 1 \text { due in } 10 \text { periods at } \\3\%\\\end{array} & 0.7441\\\hline \begin{array}{l}\text { Present value of } 1 \text { due in } 10 \text { periods at } \\4 \% \ldots \ldots \ldots . . . . . . . .\end{array} & 0.6756 \\\hline\end{array}$