Compute the price of the bond

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Assume that on January 1, 2011, Weber Company issues bonds with a face value of $300,000 that pay 10 percent interest, semiannually (5 percent per period) and mature in 10 years. Assume that the market interest rate at the date of issuance is 6 percent (3 percent per semiannual period).

Compute the price of the bond.

Record the journal entry for the bond issuance on January 1, 2011.

Reference no: EM13864882

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