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3 Naima Inc. has issued the following bonds that pays interest semiannually: i ) $ 4 , 0 0 0 , 0 0 0 Eight
Naima Inc. has issued the following bonds that pays interest semiannually:
i $ Eightyears note, annual coupon rate annual market rate
ii $ Fouryears note, annual coupon rate annual market rate
Required:
a Calculate the selling price of the each bond and the relevant discount or premium, if any.
b Compute the the interest expense. interest payment and amortized discount or premium at the end of the first two payment periods for each bond.
c Record the semiannual interest payments, interest expenses and amortization of discount or premium in the Financial Statement Effects Template for the first two payment periods for each bond.
Use Excel function to show your working.
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