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Calculate the issue price of the bond

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Question - On October 1, 2020, Best Biopharma Inc. issued an $900,000, 10.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end.

Required -

a. Calculate the issue price of the bond assuming a market interest rate of 8.0%.

b. Prepare an amortization schedule using the effective interest method.

Reference no: EM133140549

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