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You are a financial analyst/accountant. You are presented with 3 unique scenarios throughout your career. Question 1: YOU MUST COMPLETE ALL THREE PARTS OF THIS
You are a financial analyst/accountant. You are presented with 3 unique scenarios throughout your career. Question 1: YOU MUST COMPLETE ALL THREE PARTS OF THIS QUESTION. Part 1 A company issued 8%, 20-year bonds with a face amount of $72 million. The market yield for bonds of similar risk and maturity is 9%. Interest is paid semiannually. At what price did the bonds sell? (Enter your answer in whole dollars.) Price of bonds Part 2 A company issued 5%, 10-year bonds with a face amount of $92 million. The market yield for bonds of similar risk and maturity is 5%. Interest is paid semiannually. At what price did the bonds sell? (Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Price of bonds Part 3 On January 1, Snipes Construction paid for earth-moving equipment by issuing a $390,000, 2-year note that specified 2% interest to be paid on December 31 of each year. The equipment's retail cash price was unknown, but it was determined that a reasonable interest rate was 5%. What journal entry should it record for the transaction
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