Issuance of bonds-payment of interest
Problem: Prepare entries to record issuance of bonds, payment of interest, and amortization of bond discount using effective interest method.
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Prepare entries to record issuance of bonds, payment of interest, and amortization of bond discount using effective interest method.
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a. What is the bond’s price today? b. What will the bond’s price be in six months after the next coupon is paid? c. What is the total (six month) return on this bond?
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