Straight-line and effective interest method

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Beaver Inc. has issued two types of debt on January 1, 2012, the start of the company's fiscal year.
1. $20 Million par of 10 year, zero-coupon bonds at a price to yield 12% per year.
2. $10 million, 10-year, 10% unsecured bonds, interest payable semi-annually to yield 12%.

Prepare Bond Amortization Schedules for both bonds using Straight-line and Effective Interest Method.

Reference no: EM13534967

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