Market interest rate for bonds of similar risk and maturity

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Reference no: EM13920111

Salt Foods purchases twenty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $21,559 on January 1. The market interest rate for bonds of similar risk and maturity is 5%. Salt Foods receives interest semiannually on June 30 and December 31.

Required:

1. & 2. Record the necessary entries regarding the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM13920111

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Market interest rate for bonds of similar risk and maturity : Salt Foods purchases twenty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $21,559 on January 1. The market interest rate for bonds of similar risk and maturity is 5%. Salt Foods receives interest semiannually on June 30 and December 31.

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