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On January 1, 2021, Ayayai Co. issued ten-year bonds with a face value of $6,500,000 and a stated interest rate of 10%, payable semiannually on
On January 1, 2021, Ayayai Co. issued ten-year bonds with a face value of $6,500,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:
Without prejudice to your solution in part (a), assume that the issue price was $5,746,000. Prepare the amortization table for 2021, assuming that amortization is recorded on interest payment dates using the effective-interest method.
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