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Calculate the issue price of the bonds and record issuance

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Reference no: EM133117758

Question - Issuance of a Bond at Face Value - On January 1, 2017, Whitefeather Industries issued 1,100, $1,000 face value bonds. The bonds have a(n) 10-year life and pay interest at the rate of 10%. Interest is paid semiannually on July 1 and January 1. The market rate of interest on January 1 was 10%. Use the present value tables that may be found by clicking on the present value table links above. Round your answer to the nearest dollar.

Required -

1. Calculate the issue price of the bonds and record the issuance of the bonds on January 1, 2017.

2. Calculate the amount of interest accrued on December 31, 2017. If required, round your answer to the nearest dollar.

Reference no: EM133117758

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