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Stowers Research issues bonds dated January 1, 2005, that pay i

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solution


Question

Stowers Research issues bonds dated January 1, 2005, that pay interest semiannually on June 30 and December 31. The bonds have a $20,000 par value, an annual contract rate of 10%, and mature in 10 years. Required For each of the following three separate situations, (a) determine the bonds' issue price on January;1, 2005, and (b) prepare the journal entry to record their issuance.;1. Market rate at the date of issuance is 8%.;2. Market rate at the date of issuance is 10%.;3. Market rate at the date of issuance is 12%.

 

Paper#27411 | Written in 18-Jul-2015

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