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Case Inc. made the following debt investment: Face value $ 1 0 0 , 0 0 0 Coupon rate 5 percent per period Market rate

Case Inc. made the following debt investment:

Face value $

100, 000

Coupon rate

5

percent per period

Market rate

4

percent per period

Debt term

10

periods

How much interest is Case entitled to for the first period?

How much should Case have paid for the investment?

How much interest revenue should Case recognize for the first period of the investment?

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