Inserting Hyperlinks in Pages Documents

Here is what is occurring when I attempt to insert a hyperlink in a Pages document:

1. When I click on the Inspector button and check the hyperlink box the following URL address appears (as though it were a default) http://livepage.apple.com/

2. This URL address will also appear in the Pages document that I am working on. I then have to return to the document and remove this URL address before continuing.

3. If I delete this particular URL address from the Link Box and paste in the URL address I want, the highlighted text in the document appears with a rectangular shaped box around the words I want hyperlinked but there is no link established.

4. These events are all quite puzzling because I had assumed that inserting a hyperlink was a fairly easy process. I looked in the Pages' Help section to verify my understanding before I even made my initial attempt to insert a hyperlink. After continually failing to do so, I posted a message that Dennis was kind enough to respond to but I am still pretty much stuck.

Thanks, Dennis,

I had assumed that inserting hyperlinks worked as you described in your answer but I'll try it again. I posted my question because I was not able to insert hyperlinks as you had described. Well, once more into the fray. I'll let you know if I'm successful.