Mathematics, 26.01.2021 09:00 Bloom247
On January 1, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 10% and the bonds issued at $457,102. If the market interest rate drops to 7% on December 31, 2022, it will cost $601,452 to retire the bonds. Record the retirement of the bonds on December 31, 2022.
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On January 1, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable...
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