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Calculate the issue price of the bonds

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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.

Required -

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

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

(c) Record the first interest payment on July 1, 2020.

Reference no: EM132771327

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