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  3. bond contract rate = 7% semi-annualbondpar    

Bond contract rate = 7% semi-annualBondpar                 =$10,000Bond market rate   = 6% semi-annualBondlife      &nbBond contract rate = 7%...

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Accounting

Bond contract rate = 7% semi-annual

Bondpar                 =$10,000

Bond market rate   = 6% semi-annual

Bondlife                   =10 years

  1. Calculate the discount/premium amortization per period (use thestraight-line method)

Answer & Explanation Solved by verified expert
3.6 Ratings (627 Votes)
Discountpremium amortization per period 3720 or 37 Discountpremium amortization per year will be 744 or 74 Working We first need to calculate price of bond and then amortization per period Bonds issue price is calculated    See Answer
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Transcribed Image Text

In: AccountingBond contract rate = 7% semi-annualBondpar                 =$10,000Bond market rate   = 6% semi-annualBondlife      &nbBond contract rate = 7% semi-annualBondpar                 =$10,000Bond market rate   = 6% semi-annualBondlife                   =10 yearsCalculate the discount/premium amortization per period (use thestraight-line method)

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