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On January 1 of this year, Ikuta Company issued a bond with a face value of $180,000 and a coupon rate of 4 percent. The
On January 1 of this year, Ikuta Company issued a bond with a face value of $180,000 and a coupon rate of 4 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 5 percent. Ikuta uses the effective-interest amortization method.
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