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On January 1, 2020, Ospina Co. issued 20-year bonds with a face value of $4,200,000 and a stated interest rate of 6%, payable semiannually on
On January 1, 2020, Ospina Co. issued 20-year bonds with a face value of $4,200,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 4%. Table values are: Instructions (a) Calculate the issue price of the bonds. (HINT: Make sure to use the present value tables at the end of Chapter 6) (b) Prepare the amortization table for 2020 only, assuming that amortization is recorded on interest payment dates.
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