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Question
On January 1, 2011, when the market rate of interest was 12%, Habs Company issued five-year bonds with a maturity value of $750,000. The bonds have a 10% stated rate and pay interest semi-annually on July 1 and December 31.
Requirements:
1. Calculate the bond discount as of the date of issue.
2. Calculate the bond discount balance as of January 1, 2012.
Answer
This answer is hidden. It contains 175 characters.
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