1. On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of...

1. On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%.
The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the
bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the
bond