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Assume a company has a $10 million bond issued with a 5% annual coupon rate, which matures in 5 years. If the market interest rate

Assume a company has a $10 million bond issued with a 5% annual coupon rate, which matures in 5 years. If the market interest rate is 8%, what would be the value of the bond at the end of the first year, assuming it uses the straight-line method of amortization and a year-end payment date? How would you record this transaction on the company's financial statements?

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