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Bond die Corporation issued $100 million worth of bonds on January 1, 2010. Each bond has face value of $1,000, carries a coupon rate of
Bond die Corporation issued $100 million worth of bonds on January 1, 2010. Each bond has face value of $1,000, carries a coupon rate of 8% with interest paying semi-annually (on June 30 and December 31). The bonds are set to mature in 5 years on December 31, 2014. The market interest rates during the life of the bond is as follows: What was each bond sold for? Prepare journal entries at time of issue. What will be reported in the Income Statement at the end of June 30, 2010? What was amortized? What will be reported on the bonds in the balance sheet of Bond die Corporation on 31 December, 2013? If the company retired the bonds on 31 December 2013, what was the gain or loss recognized? Prepare journal entries for bond retirement. (Bond traded at par value)
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