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On 1/1/2023 XYZ issued a bond package with a principal of $600,000. Bonds pay interest...

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Accounting

On 1/1/2023 XYZ issued a bond package with a principal of $600,000. Bonds pay interest on 12/31 of each year. Other information about this issue appears below:

RATE 14%

Contract rate 12%

Periods (Nper) 10

Annuity (PMT) %72,000

Annuity type (type) ordinary

a.Determine the present value of the bond.

b. Using the data from the previous problem, indicate the amount of interest expense that will be reported on the statement of income and expenses for the period ending 12/31/2023. Show all your computations.

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