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on January 1, 2017, the company issued 10-year bonds with a face value of $400,000. The bonds carry a coupon rate of 10% and
on January 1, 2017, the company issued 10-year bonds with a face value of $400,000. The bonds carry a coupon rate of 10% and the market rate for bonds issued by other companies with similar risk was 12%. Interest on the bonds is paid twice per year on July 1* and Jan 1st. Calculate the price of the bond using the present or future value tables A. provided. Worth 6 points B. Using the effective interest method, make a table to cover interest payments through to the end of the year of 2018. Worth 4 points C. Journalize the bond issue and the interest payment for January 1, 2018. Worth 2.5 points. EFFECTIVE INTEREST TABLE Interest Amt. of Interest Discount Unamortized Carrying Payment Interest Paid Expense value of Amortization Discount No. Bond 2 3 4 O Focus MacBook Pro
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