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Paris Products Ltd . issued $ 3 million of 5 % , 5 - year bonds on January 1 , 2 0 2 4 .
Paris Products Ltd issued $ million of year bonds on January The bonds were dated January and pay interest annually. There is no collateral secured against the bonds and Paris Products may buy back the bonds at any time. The market interest rate was for these bonds. Paris has a calendar year end.
Instructions
Describe the features of these bonds.
Calculate the price of the bonds and record the bond issue.
Prepare an effectiveinterest amortization table for these bonds. Round amounts to the nearest dollar.
Record any required entries for the first three years the bonds are outstanding assuming reversing entries have not been used.
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