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Determine the price of the bonds to be issued

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Question - On January 1, 20X1, Beltnet Pte Ltd issued a 4-year bonds at a price of $622,837. The premium of the bonds was $22,837. Interest would be paid annually on 31 December. The bonds carried a coupon rate of 3% and the market interest rate was 2%.

Required -

(a) Present the journal entries for the year 20X1. Round up your answers to the nearest whole number.

(b) If the market interest was 4% instead of 2%, determine the price of the bonds to be issued. Workings must be clearly shown. Round up the answer to the nearest whole number.

Reference no: EM132939855

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