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Johnny C. has $1,000,000 in face value bonds with a 6% stated interest rate outstanding....

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Accounting

Johnny C. has $1,000,000 in face value bonds with a 6% stated interest rate outstanding. The bonds have a current carrying value of $990,000 and an effective interest rate of 7%. What is the Interest expense for the next semi-annual interest payment? and what will be the semi-annual cash payment be?

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