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A company sells a 5-year, 8% bond with a par value of $100,000 when the market is 10% for $96,454 . The bond requires semi-annual
A company sells a 5-year,
8%
bond with a par value of
$100,000
when the market is
10%
for
$96,454
. The bond requires semi-annual interest payments of
$4,000
. Using the effective interest amortization method, the company will recognize interest expense on the first semi-annual interest payment.\
$5,000
\
$4,823
\
$3,858
\
$4,000
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