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Details of a bond maturing on December 31, 2021 appear below. The bond makes annual coupon payments. Date Coupon Interest Expense Book Value Jan1, 2019

Details of a bond maturing on December 31, 2021 appear below. The bond makes annual coupon payments.

Date Coupon Interest Expense Book Value
Jan1, 2019 $36,021
Dec. 31, 2019 $2,400 3,602 37,223
Dec, 31, 2020 2,400 3,722 38,545
Dec. 31, 2021 2,400 3,855 40,000

a. What is the coupon rate?

b. What is the interest rate?

c. Was the bond issued at a discount or premium? how do you know this?

d. What journal entry was recorded on December 31, 2019?

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