Homework Answers
The correct answer is 15 years
Explanation
Firstly we have to calculate the discount on bond
= face value- issue price
= 3500000 -3197389
= $ 302611
No. Of 6 moths period during life of bond
= discount on bond ÷ discount amortization per period
= 302611 ÷ 10087
= 30 Periods
No. Of years = no. Of periods ÷ 2
= 30/2
= 15 years
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