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NO EXPLANATION NEEDED, please, just solve everything, would be greatly appreciated (thumbs up)! :) 8%, 10%, 12% 8%, 10%, 12% Problem 14-7AA Computing bond price
NO EXPLANATION NEEDED, please, just solve everything, would be greatly appreciated (thumbs up)! :)
8%, 10%, 12%
8%, 10%, 12%
Problem 14-7AA Computing bond price and recording issuance LO C2 Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $33,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1, Table B.2. Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each separate situation. 1. The market rate at the date of issuance is 8%. (a) Complete the below table to determine the bonds' issue price on January 1. (b) Prepare the journal entry to record their issuance. 2. The market rate at the date of issuance is 10%. (a) Complete the below table to determine the bonds' issue price on January 1. (b) Prepare the journal entry to record their issuance. 3. The market rate at the date of issuance is 12%. (a) Complete the below table to determine the bonds' issue price on January 1. (b) Prepare the journal entry to record their issuance. Table values are based on: Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds General Journal Debit Credit January 01
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