Information: Bond contract rate= 7% semi-annual bond par= $10,000 bond market rate = 6% semi-annual Bond...

Information:

Bond contract rate= 7% semi-annual

bond par= $10,000

bond market rate = 6% semi-annual

Bond Life = 10 years

1.) what is the selling price of this bond?

2.) Will it be sold at a discount or premium?

3.) Do the journal entry for the issuance.

4.) Calculate the discount/premium amortization per period (line method)

Expert Solution

ekkarill92 answered 2 years ago

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