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On January 1, 2018, when the market rate of interest was 7%, Habs Company issued 2-year bonds with a maturity value of $1,000,000. The bonds
On January 1, 2018, when the market rate of interest was 7%, Habs Company issued 2-year bonds with a maturity value of $1,000,000. The bonds have a 5% stated rate and pay interest semi-annually on June 30th and December 31st. a) Calculate the bond's issue price and discount as of the date of issue. b) Calculate the bond discount balance as of January 1, 2020, immediately after the second coupon is paid.
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