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sorry it says 20 year bond, can you please treat it as a 10 year bond? Rob PIII Iudy UiU 10 W On 1/1/2011, Johnson
sorry it says 20 year bond, can you please treat it as a 10 year bond?
Rob PIII Iudy UiU 10 W On 1/1/2011, Johnson Electric issued bonds with a total face value of $10,000,000. The bonds mature on 12/30/2020 (20- year bonds) and pay 7% annual interest rate. Interest payments are made annually each 12/31, beginning on 12/31/2011. The market interest rate for these bonds is 8%. Johnson's fiscal year ends on 12/31. What is the issue price of these bonds? Compute interest expense for 2011. Compute interest expense for 2012. Compute the Gain or Loss on retirement of the bonds on 1/1/2021 (10 years after issue) at a price of $10,100,000. What was the market interest rate at the time of retirement Step by Step Solution
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