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 for the bonds is 10%. Compute the price of the bonds on their issue date. The following information is taken from present value tables:
$$\begin{array} { l | l } \text { Present value of an annuity for } 10 \text { periods at } & 8.1109 \\4 \% & \\\hline \text { Present value of an annuity for } 10 \text { periods at } \\5 \% & 7.7217 \\\hline \text { Present value of } 1 \text { for } 10 \text { periods at } 4 \% & 0.6756 \\\hline \text { Present value of } 1 \text { for } 10 \text { periods at } 5 \% & 0.6139\end{array}$$