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On January 1, 2011, Company A issues long-terms bonds which are due on January 1, 2016. Interest is paid semiannually on January 1 and July

On January 1, 2011, Company A issues long-terms bonds which are due on January 1, 2016. Interest is paid semiannually on January 1 and July 1 each year. Face amount of bonds is $500,000 with stated interest rate (coupon rate) of 10%. At the time of issuance, market interest rate is 12%. What will be the price of bonds issued by Company A? What will be the entry on the 1st payments date, what will be the entry to retire the bond at maturity?

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