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5. 3.90 points Exercise 10-3 Computing bond interest and price; recording bond issuance LO P2 Bringham Company issues bonds with a par value of $670,000
5. 3.90 points Exercise 10-3 Computing bond interest and price; recording bond issuance LO P2 Bringham Company issues bonds with a par value of $670,000 on their stated issue date. The bonds mature in 9 years and pay 10% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 12%. (Table B.1. Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest payment for these bonds? Semiannual Rate Semiannual cash interest payment Par (maturity) value 670,000 5.0%) 33,500 2. How many semiannual interest payments will be made on these bonds over their life? Number of payments 18 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. At par. At a premium. At a discount
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