On December 1, the Weber Corporation plans to issue bonds with a face value of $ 8,000,000. The bonds mature in 10 years and have a face rate of 10 percent interest that is paid semiannually. If the market rate of interest when the bonds are issued is 8 percent, how much cash will Weber receive? What will be the interest expense shown on the budgeted income statement for the first year of the bonds’ life? How much cash is paid out in the first year of the bonds’ life?
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