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On January 1, 2018, Coney Island Entertainment issues $1,300,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December
On January 1, 2018, Coney Island Entertainment issues $1,300,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market rate is 6%, and the bonds issued at $1,427,403. Round all answers to the nearest $1.
1. What is the amount of the semiannual interest payment?
2. What is the carrying value at the end of the second payment on December 31, 2018?
3. What is the amount of the true interest expense at the first June 30 payment?
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