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Assume that Ceros Company issued a $100,000 face value, five-year, zero-coupon bond on January 1 of the current year. The current market interest rate is

Assume that Ceros Company issued a $100,000 face value, five-year, zero-coupon bond on January 1 of the current year. The current market interest rate is 4%.

What is the bond issue price? Prepare an amortization table using the effective interest rate method. What are the journal entries to record the issuance and interest for the first year?

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