When bonds are first sold, or issued, they need a price.
Fortunately, the price is the result of two types of calculations that you likely already know:
Even though it seems simple, many students get confused when deciding which interest rates to use in which parts of the problem.
You've been provided with the following information:
The present value factor for an ordinary annuity at 6% for 5 years is 4.21236
The present value factor for an annuity due at 6% for 5 years is 4.46511
The present value factor for an annuity due at 5% for 5 years is 4.54595
The present value factor for an ordinary annuity at 5% for 5 years is 4.32948