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Problem 1 Company: XYZ Company Date of bonds: January 1, 2020 Term: 5 years Face (Par) Value: $100,000 Stated interest rate: 8% Interest payment dates
Problem 1 Company: XYZ Company Date of bonds: January 1, 2020 Term: 5 years Face (Par) Value: $100,000 Stated interest rate: 8% Interest payment dates on January 1 and July 1 The effective interest rate (market yield) is 10%. 1. Compute the market price of the bonds and make the journal entry to record the issuance of the bonds
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