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Just two requires correction not 1 or 2 Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds' annual
Just two requires correction not 1 or 2
Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $170,862. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much total bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: 6 payments of $ 8,100 x $ Par value at maturity Total repaid Less amount borrowed Total bond interest expense 48,600 180,000 228,600 170,862 57,738Step by Step Solution
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