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Describe the life of the bond is

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Question: On January 1, 2017, Babb Trailers Inc. issued $6,500,000 of par value bonds for $6,200,000. The bonds pay interest semiannually on January 1 and July 1. The contract rate of interest is 3% while the market rate of interest for similar bonds is 5%. The bond premium or discount is being amortized at a rate of $10,000 every six months. The life of the bond is?

Reference no: EM132745834

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