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On December 31, Year 7, PCP Ltd. purchased bonds of ACP Ltd. These are 10-year, 5% coupon bonds with a face value of $1,000,000, paying
On December 31, Year 7, PCP Ltd. purchased bonds of ACP Ltd. These are 10-year, 5% coupon bonds with a face value of $1,000,000, paying interest twice a year on June 30 and December 31 at a market rate of 5.05%. The bonds will be accounted for at cost/amortized cost.
What was the issue price?
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