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3. Preston Industries issued a bond on January 1, 2010. The bond has a 10 -year maturity, a $5,000,000 face value, and has a face

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3. Preston Industries issued a bond on January 1, 2010. The bond has a 10 -year maturity, a $5,000,000 face value, and has a face interest rate of 8.00% per year. The bond pays interest semiannually on June 30 and December 31 . The bond yield is 7.80%. a) Find the issue price of the bond. b) Provide the journal entry required to record the interest payment on June 30, 2010 using the effective interest method

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