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2 seperate problems PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds

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PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year Power Tap uses the effective interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1. PV of $1. EVA of $1 and PVA OLS1) (Use the appropriate factor(s) from the tables provided) P10-6 Part 4 4. What is the book value of the bonds on June 30 and December 31 of this year? (Round your final answers to nearest whole dollar amount.) Answer is complete but not entirely correct. June 30 December 31 Bonds payable 888.414 888.414

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