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On January 1 of Year 1, Congo Express Airways issued $5,200,000 of 7%, bonds that pay interest semiannually on January 1 and
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Answer #1

Ans: 14 year

Explanation:

1) Bond Discount:

= $ 5,200,000 - $ 4,836,000

= $ $364000

2) Annual Amortization:

$ 13000 × 2

= $26000

3) Life of Bonds

= $ 364,000 ÷ $ 26000

= 14 year

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