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Business, 05.05.2020 05:04 sofyan00404

The six month interest payment on the bonds payable is due Jan. 3 of next year for the six-month period ended on Dec. 31 of this year. The stated (coupon) rate of interest is 10% annually. The market (yield-to-maturity) rate of interest is 12% annually. There were 10 years to maturity at June 30th of this year (the last interest payment date). The bonds are semi-annual.
Required:
1. Record interest expense and discount amortization at Dec. 31.

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