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Determine the market price of a $3,000,000, 5-year, 6% (pays interest quarterly) bond. At the time of issuance, the market interest rate for similar financial
Determine the market price of a $3,000,000, 5-year, 6% (pays interest quarterly) bond. At the time of issuance, the market interest rate for similar financial instrument is 8%.
Required:
a) Compute the selling price of the bond (round to nearest dollar)
b) Record the journal entry upon issuance of the
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Edition
0471347744, 978-0471347743
