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Please answer a, b, c, and d. Thanks Stanford issues bonds dated January 1,2017 , with a par value of $500,000. The bond's coupon rate
Please answer a, b, c, and d. Thanks
Stanford issues bonds dated January 1,2017 , with a par value of $500,000. The bond's coupon rate is 9% and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12% and the bonds are sold for $463,140. a. What is the amount of the discount on these bonds at issuance? b. How much total bond interest expense will be recognized over the life of the bond? c. Prepare an Amortization Schedule for the Stanford bonds. Use the effective interest method to amortize the discount. d. Record the entry for the issuance of the bonds on January 1, 2017. e. Record the entry for the second semiannual interest paymentStep by Step Solution
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