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On January 1, Day Co. paid $108,250 for $100,000 face amount, five-year, 8% bonds, a price that yields 6%. Interest is payable every July 1
On January 1, Day Co. paid $108,250 for $100,000 face amount, five-year, 8% bonds, a price that yields 6%. Interest is payable every July 1 and January 1. Total Interest Revenue to be recorded over the life of the bond is:
Select one:
a.$11,750
b.$28,250
c.$48,250
d.$16,250
e.$31,750
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