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Subaru company issued 700,000 par value, 10 year 6% bonds on July 1,2017 when the market was 8%. interest is paid on June 30 and Dec 31. eacch year
Required:
Question 1: have these bonds issued at par or at a discount or at a premium
Question 2: Calculate the bond price on the issue date (round to nearest Dollar)
Question 3: How much total bond interest expense will be recognized over the life of these bonds (show calculations)
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