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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Calculate the issue price of a bond and prepare amortization schedules (LO9–5, 9–6)
P9–3B Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable
semiannually on June 30 and December 31 each year.
Required:
Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:
1. The market interest rate is 6% and the bonds issue at face amount.
2. The market interest rate is 7% and the bonds issue at a discount.
3. The market interest rate is 5% and the bonds issue at a premium.
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