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

On January 1, Canglon, 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. Use tables to help. Round your answers to two decimal places, if necessary.