Use the following information to answer the following questions (I had posted this question earlier...
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Accounting
Use the following information to answer the following questions (I had posted this question earlier today but the answers given by a Chegg expert were ALL wrong as per the answer key). I will try again in hopes of getting the right answer and work. Thank you.
Bonds: $1,000,000 Par Value
Semiannual Interest Payments, three-year life
Annual Contract Rate: 6%
Annual Market Rate: 8%
What is the price of the bond?
What is the amount of the bond discount?
What is the semi-annual cash payment to the bondholder ?
what is the interest expense for the second semi-annual payment under the effective interest method?
Please show the work and the answers.
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