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show all of the steps. 1. Assume that XYZ issues $100,000 of 8%,10 year bonds on 1/1/23. The bonds pay interest each 12/31, and mature
show all of the steps.
1. Assume that XYZ issues $100,000 of 8%,10 year bonds on 1/1/23. The bonds pay interest each 12/31, and mature on 12/31/32. Record the following: a. Assume the bonds are sold at par. Record the issuance as well as the interest on 12/31/23. Record the redemption of the bonds at maturity. b. Assume the bonds are sold at 98 , and that XYZ uses straight-line amortization. Record the issuance of the bonds, as well as the interest/amortization at 12/31/23. c. Assume the bonds are sold to yield 10\%. Calculate the issue price of the bond. Record the issuance of the bonds. Assuming XYZ uses effective interest amortization, record interest/amortization at 12/31/23 and 12/31/24 Step by Step Solution
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