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On 1 July 2018 . At the time of issuing the securities, the market requires a rate of return of 8 per Madhav Ltd issues

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On 1 July 2018 . At the time of issuing the securities, the market requires a rate of return of 8 per Madhav Ltd issues $16000000 in five-year debentures that pay interest each six months at a coupon rate of 10 per cent. Interest expense is determined using the effective-interest method. Complete the following: A. Determine the issue price. ( 3 marks avallable) B. Using the following table template, calculate the Interest expense and prepare the journal entries at the following dates. PV tables are accessible vla this link. (9 marks avallable) 1 July 2018 30 June 2019 30 June 2020

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