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XYZ Company issues bonds at a discount. The company uses the Effective Interest rate method to account for the bonds. Par value= $100,000 coupon rate=

XYZ Company issues bonds at a discount. The company uses the Effective Interest rate method to account for the bonds.

Par value= $100,000

coupon rate= 8% per year

Term to maturity= 5 years

Market rate= 10% per year

A. What are the proceeds from the bond issue?

B. How would XYZ record the bond issuance (i.e, the debit and credit)?

*Please show work, it would be great appreciated!*

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