What is the issue price of the bond


Assume that on January 1, 2005, Weber Company issues bonds with a face value of $300,000 that pay 6 percent interest, semiannually (3 percent per period) and mature in 10 years. Assume that the market interest rate at the date of issuance is 10 percent (5 percent per semiannual period). What is the issue price of the bond?

a) $300,000

b) $226,265

c) $225,227

d) $210,111

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Accounting Basics: What is the issue price of the bond
Reference No:- TGS079157

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