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Assume XYZ Corp. sells $100,000 of five-year bonds with a semiannual coupon of 5%, or 10% per year. Investors think the company is risky, so

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Assume XYZ Corp. sells $100,000 of five-year bonds with a semiannual coupon of 5%, or 10% per year. Investors think the company is risky, so they demand a 12% yield to maturity for buying these bonds. Use present value factor table. a) What is the bond price? b) How much is the total Discount/Premium? c) Do all the required the journal entries (Original issuance of the bond, interest payment and the final payment) d) Show the amortization table using both Straight line method and Effective Interest Method

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