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Exercise 14-4 Shamrock Inc. issued $810,000 of 10.50%, 18-year bonds on January 1, 2017 at 102. Interest is payable semi-annually on July 1 and January
Exercise 14-4
Shamrock Inc. issued $810,000 of 10.50%, 18-year bonds on January 1, 2017 at 102. Interest is payable semi-annually on July 1 and January 1. Shamrock Inc. uses the effective interest method of amortization for any bond premium or discount. Assume an effective yield of 9.80%. (With a market rate of 9.80%, the issue price would be slightly higher. For simplicity, ignore this.)
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