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BZ Corp issues 7%, 10-year bonds with a total face amount of $1,000,000.  The market interest rate...

BZ Corp issues 7%, 10-year bonds with a total face amount of $1,000,000.  The market interest rate for bonds of similar risk and maturity is 7%.  Interest is paid semiannually.

8.     $___________ What is the issue price of the bond?                                                                                                       

9.     $___________. When the company records the 2nd interest payment, how much will the company record for interest expense?

                                                                                                                                                

10.            $___________. What is the bond liability (carrying amount) after the 2nd interest payment?

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Answer → 8. What is the issue price of the bond? → Issue price of the $ 1000000 bond Issue price of the =/ Present Value + pr>Issue price = $1000000% PVFC3.5420) +$35000X PVAF(3.540,20 of the bond Issue boice = [ $1000000 X 0.50256588436 +$35000x 14,9. When the company records the 2nd Interest payment, how much will the company record for Interest, Expense? → The company wSo, Bonds liability after = $ 1000000 2nd Interest payment

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