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Company: Date of bonds: Term Face (Par) Value: $1,000 Stated interest rate: 12% Effective interest rate: 10% Interest payment dates on January 1 and July

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Company: Date of bonds: Term Face (Par) Value: $1,000 Stated interest rate: 12% Effective interest rate: 10% Interest payment dates on January 1 and July 1 XYZ Company January 1, 2018 5 years 1. Compute the market price of the bonds and journalize the issuance of the bonds. (4/4 Points) Prepare a schedule to amortiz first year and journalize the entries to record the interest payment on July 1, 2018 and January 1 2019. (4/4 Points) 2. ze the premium or discount using the effective interest method of amortization for the Interest expense for the year ended December 31, 2018 is (2 Points) 3

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