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Auerbach Inc. issued 6% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $360
Auerbach Inc. issued 6% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $360 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $306,442,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2019, rounded up to the nearest thousand? $307,899,680. $306,442,000. $304,984,320. $309,357,360.
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