What is the difference between the cash received

Reference no: EM13131071

Duncan Brooks, Co., needs to borrow $500,000 to open new stores. Brooks can borrow $500,000 by issuing 5%, 10-year bonds at a price of 96. How much will Brooks actually receive in cash under this arrangement? How much must Brooks pay back at maturity?

How will Brooks account for the difference between the cash received on the issue date and the amount paid back?

Reference no: EM13131071

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