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Bond Issuance and Interest Expense Calculation : A company issues a $200,000 bond at a discount, receiving $190,000 in proceeds. The bond has a 10-year
- Bond Issuance and Interest Expense Calculation: A company issues a $200,000 bond at a discount, receiving $190,000 in proceeds. The bond has a 10-year term with a coupon rate of 5%, payable annually. The effective interest rate is 6%. Calculate the interest expense for the first year using the effective interest rate method.
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Intermediate Accounting Volume 2
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
8th Edition
1260881245, 9781260881240
