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Calculate the interest and principal payments

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Question - Acme Co. issued $100,000, six year bonds, carrying a coupon rate of ten percent (10%), interest payable annually on December 31 each year. The bonds were issued at an effective yield (market rate) of seven percent (7%). Assume that the net proceeds from the issue of the bond differed from the face value of the bond by $12,000.

How do you calculate the interest and principal payments for Straight Line Amortization method?

Reference no: EM131632441

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