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The answer to 1 is $992,245 and 2 is $7,755 but I am stuck on 3-5. The company issues 5% 10-year bonds with a total
The answer to 1 is $992,245 and 2 is $7,755 but I am stuck on 3-5.
The company issues 5% 10-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 5.1%. % PV PVA 10 5.00% 0.61391 7.72173 10 5.10% 0.60810 7.68437 20 2.50% 0.61027 15.58916 20 2.55% 0.60435 15.51579 ROUND ANSWERS TO NEAREST DOLLAR 1. What is the issue price of the bond? $ 2. Record the issuance of the bond: When recording the journal entry above, how much was the discount or premium? $ 3. What is the interest expense for the first interest payment? $_ 4. What is the bond liability after the first interest payment? $_ 5. What is the interest expense for the second interest payment? $__Step by Step Solution
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