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TR issues 6.0%, 10-year bonds with a total face amount of $1,500,000. The market interest rate for bonds of similar risk and maturity is
TR issues 6.0%, 10-year bonds with a total face amount of $1,500,000. The market interest rate for bonds of similar risk and maturity is 5.9%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). 4. $ (rounded to nearest dollar). What is the issue price of the bond? 5. $ (rounded to nearest dollar). When the company records the first interest payment, how much will the company record for interest expense? 6. $ payment? (rounded to nearest dollar). What is the bond liability (carrying amount) after the first interest 7. $ (rounded to nearest dollar). When the company records the second interest payment, how much will the company record for interest expense?
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