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Corporation A on January 1, 2021, issues $200,000 of 4% bonds due in 5 years with interest payable annually at yearend. The current market rate
Corporation A on January 1, 2021, issues $200,000 of 4% bonds due in 5 years with interest payable annually at yearend. The current market rate of interest for bonds of similar risk is 2.5%. a) What will bond buyers pay for this bond issue? b) Prepare an amortization schedule for the entire life of the bond using the effectiveinterest rate method.
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