Issue bonds to fund large investment project

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Reference no: EM131287056

DuoTronics, Inc. plans to issue bonds to fund a large investment project that it estimates will cost $10,000,000. The bonds will carry the following profile:

Face Value: $1,000

Coupon: 6%

Payment Frequency: Annual

Maturity: 10 years

Required:

a. How many bonds will DuoTronics need to issue assuming the following Market Rates: i. 4% ii. 6% iii. 9%

b. Show the journal entry at issuance for each of the above Market Rates

c. Show the journal entry used to record the first Coupon Payment for bonds issued at each of the above Market Rates.

Reference no: EM131287056

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