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Bond Issued at 300,000. 12% stated interest. Bond pays interest two times per year on 6/30 and 12/31. Bond comes due 10 years from date
Bond Issued at 300,000. 12% stated interest. Bond pays interest two times per year on 6/30 and 12/31. Bond comes due 10 years from date purchase. Use straight line amortization to separately calculate selling price, and carry value of the bond at 13.5% yield, and at a 10.75% yield for the first two interest payments of the first year**. Show work and round calculations to nearest dollar using the Pv = Fv/(1+i)^n formula to start.
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