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What is the issue price of the bond

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Reference no: EM132842377

Question 1 - ABC company issued a five-year corporate bond of $600,000 with a 5% interest rate for $580,000. What effect the bond issuing on the accounting equation.

a. Increase assets and liabilities.

b. Increase and decrease stockholders' equity.

c. Increase assets and decrease liabilities.

d. Increase and decrease assets.

Question 2 - ABC company issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments of the bond are made semi-annually. The market rate for the bond is 12%. What is the issue price of the bond?

Reference no: EM132842377

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