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What is their interest expense on the bond each year

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Q1. A firm sells a 30-year bond for a discount of $15,000 over its $200,000 face value. If the bond's coupon rate is 7%, and they use straight line amortization methods for all intangible assets, what is their interest expense on the bond each year? After you provide your answer, add a note about how you found it.

Q2. A firm sells a 20-year bond for a premium of $25,000 over its $250,000 face value. If the bond's coupon rate is 7%, and they use straight-line amortization methods for all intangibles, what is their interest expense on the bond each year? After you provide your answer, add a note about how you found it.

Reference no: EM132543556

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