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1. Under what conditions of bond issuance do a discount on bonds payable arise? Under...

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Accounting

1. Under what conditions of bond issuance do a discount on bonds payable arise? Under what conditions of bond issuance does a premium on bonds payable arise?

2. Distinguish the differences among the following interest rates for bonds payable: yield rate, nominal rate, stated rate, market rate, and effective rate. Please give an example of each rate applied to actual practice.

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