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Jones Company issued $50,000, 5 year, 8% bonds at 98 plus accrued interest. The interest is paid semiannually on March 1 and September 1. The
Jones Company issued $50,000, 5 year, 8% bonds at 98 plus accrued interest. The interest is paid semiannually on March 1 and September 1. The bonds are dated March 1, Year 1. The date of sale is May 1, Year 1.
Calculate the amount of the accrued interest on the bonds on the date they were issued (May 1, year 1).
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