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5 LAMCOTrash is facing a liquidity shortage in its business and decided to raise some working capital by selling a bond. The face value of
5 LAMCOTrash is facing a liquidity shortage in its business and decided to raise some working capital by selling a bond. The face value of the bond is $50,000.00 with 3-year maturity period and has a stated 5% interest. The market interest rate for the similar bonds is 7.5% and interest will be calculated and paid quarterly. a What is the total discount amount on this bond? b What is the carrying value of the bond at the issuance of the bond and after 7th payment? C Prepare a bond amortization schedule for this bond
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