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II. Debt A. Term Bond A10 year, 4% stated rate bond, dated Jan. 1, 2019 was sold at 98 on April 30, 2019 B Calculate
II. Debt A. Term Bond A10 year, 4% stated rate bond, dated Jan. 1, 2019 was sold at 98 on April 30, 2019 B Calculate the effective interest rate and record the issuance of the bond. 4 Issuance costs were $500. Interest payments are made annually. 5 6 Calculation of Effective Rate 7 18 19 20 21 22 Record the issuance of the bond: 123 124 125 126 127 PV 97500 n PMT 10 4000 FV 100,000 Calc rate 4.31%
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