Calculate the issue price of the bonds

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Reference no: EM132769032

Question - On January 1, 2020, Sandhu Corporation issued $600,000, 7%, 10-year bonds. The bonds pay semi-annual interest on July 1 and January 1. The market interest rate at the time of issue was 6%. Sandhu uses the effective-interest method.

Instructions -

(a) Calculate the issue price of the bonds (round to nearest dollar).

(b) Record the issue of the bonds on January 1, 2020.

Reference no: EM132769032

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