Answer:
Accrued Interest = Bond Value x Rate of Interest x period
Accrued Interest = $16000000 x 10% x 3/12 = $400000
At the time of issuance, Contemporary Products would receive cash proceeds that would include accrued interest of :$400000
On September 1, 2021, Contemporary Products, issued $16 million of its 10% bonds at face value....
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