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I would like to compare answers. Please show working if possible. On 1st July 2017 Pod Ltd issues $1 million in five year debentures that
I would like to compare answers. Please show working if possible.
On 1st July 2017 Pod Ltd issues $1 million in five year debentures that pay interest each six months at a coupon rate of 10%. At the time of issuing the securities, the market requires a rate of return of 8% On 1st July 2017 Spinner Ltd issues $5 million in five year debentures that pay interest each six months at a coupon rate of 8%. At the time of issuing the securities, the market requires a rate of return of 10% On 1st July 2017 Honkey Ltd issues $2 million in six year debentures that pay interest each six months at a coupon rate of 8%. At the time of issuing the securities, the market requires a rate of return of 6% In each case the interest expense is determined using the effective interest rate method. Determine the issue price and provide the journal entries as at: 1st July 2017 30th June 2018 30th June 2019Step by Step Solution
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