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Moving to another question will this sponse S ution 325 2 points Save and On January 1, art. Der Cowed bonds with a face of 0
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Answer #1
Bond issue price 91670 =89000*1.03
Less: Bonds face value 89000
Premium on issue 2670
Annual premium amortization 534 =2670/5
Annual interest paid 8010 =89000*9%
Annual interest expense 7476 =8010-534
Option C $7476 is correct
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