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On January 1, 2021, an investor paid $298,000 for bonds with a foce amount of $318,000. The contract rate of interest is 11 w
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The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

Answer Firstly we have to calculate the carrying value of the Bond as on 1 january 2022 = Carrying value as on 1 january 2021

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