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Company ABC issued 1,000 bonds with a face value of $1,000 each and a coupon rate of 5%. The bonds pay interest semi-annually, and the
Company ABC issued 1,000 bonds with a face value of $1,000 each and a coupon rate of 5%. The bonds pay interest semi-annually, and the market interest rate is 4%. Calculate the total proceeds from the issuance of bonds and prepare the journal entry to record the issuance. Discuss the characteristics of bonds and their significance in long-term financing, debt capital markets, and corporate finance.
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