On January 1, 2019, Lightfoot Corporation issues 10%, 5-year bonds with a face value of $275,000 when the effective interest rate is 9%. Interest is to be paid semiannually on June 30 and December 31. Prepare calculations to prove that the selling price of the bonds is $285,880.07. Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary. Present value of principal$fill in the blank 1 Present value of interestfill in the blank 2 Selling price

Face Value of Bonds = $275,000

Annual Coupon Rate = 10%

Semiannual Coupon Rate = 5%

Semiannual Coupon = 5% * $275,000 =  $13,750

Time to Maturity = 5 years

Semiannual Period = 10

Annual Interest Rate = 9%

Semiannual Interest Rate = 4.5%

Present Value of Principal = $275,000 * PV of $1 (4.50%, 10)

Present Value of Principal = $275,000 * 0.643928

Present Value of Principal = $177,080.20

Present Value of Interest = $13,750 * PVA of $1 (4.50%, 10)

Present Value of Interest = $13,750 * 7.912718

Present Value of Interest = $108,799.87

Cross-Check

Selling Price = Present Value of Principal + Present Value of Interest  = $177,080.20 + $108,799.87 = $285,880.07

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)