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Superb Drive-Ins borrowed money by issuing $2,500,000 of 11% bonds payable at 92.5. Interest is paid semiannually. Requiremen
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Answer #1

1) Amount received = $2,500,000 X 92.5% = $2,312,500

2) At maturity $2,500,000 will be paid.

3) Interest for 6 months = $2,500,000 X 11% X 6/12 = $137,500

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