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Problem 1: Champaign County issued bonds on January 1, 2021. The bonds pay semiannual interest on June 30 and December 31 and they are sold at a discount between interest dates, on March 1, 2021. Which of the following statements is correct?
Group of answer choices
Option 1: The interest payments are different than they would have been if bonds were sold on the issue date.
Option 2: They are sold at their price plus any interest that has accrued since the last interest date.
Option 3: The issuer will record a debit to interest payable upon issuance.
Option 4: The investor will record a credit to interest receivable upon issuance.
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