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AMD Corporation issues 8 % , 1 0 year bonds with a par value of $ 5 0 0 , 0 0 0 and semiannual

AMD Corporation issues 8%,10 year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 871/2. Prepare the journal entry for the issuance of the bonds for cash on January 1.

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