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Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds have a $25,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) |
| 1. | The market rate at the date of issuance is 8%. |
| (a) |
Complete the below table to determine the bonds’ issue price on January 1, 2013. |
| b) |
Prepare the journal entry to record their issuance. |
b)
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