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Problem 1 On January 1, 2018, Wildcat Company spent $80,695.66 to purchase bonds with face value of 100,000. The stated rate on the bonds are
Problem 1 On January 1, 2018, Wildcat Company spent $80,695.66 to purchase bonds with face value of 100,000. The stated rate on the bonds are 7%. The bonds are to be held to maturity. The bonds pay interest semiannually on June 30 and December 31. These bonds will mature in 5 years since the date of purchase. Required: (1.) Prepare the appropriate journal entry to record the acquisition of the bonds. (2.) What is the annual YTM? (3.) Record the first two interest payments
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