Question: On January 1, Corley, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be

On January 1, Corley, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%.

Interest is to be paid semiannually. Prepare calculations to prove that the selling price of the bonds is $138,959.90.


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