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Question - Three year bonds are issued at face value of $100,000 on Jan. 1, 2011, and a stated interest rate of 8%. Calculate the issue price of the bonds assuming a market interest rate of 6%.
Required -
1. Calculate the present value.
2. Calculate the Bond Amortization Table.
Provide one example where information is relevant. Provide one example where information is not relevant but is faithfully represented.
Under the FIFO method, unit costs would:
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Amortizing a bond discount:
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