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5 Enviro Company issues 13.00%, annual market rate for these 10-year bonds with a par value of $480.000 and semiannual interest payments. On the issue
5 Enviro Company issues 13.00%, annual market rate for these 10-year bonds with a par value of $480.000 and semiannual interest payments. On the issue date, the bonds is 10.00%, which implies a selling price of 129 18. The straight-line method is used to allocate interest expense. 10 point 1. Using the implied selling price of 129 1/8. what are the issuer's cash proceeds from issuance of these bonds? 2 What total amount of bond interest Hint expense will be recognized over the life of these bonds? Amount repaid Par value at maturity Reterences Less amount borrowed (from part 1) Total bond interest expense 3. What is the amount of bond interest expense recorded on the first interest payment date
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