Amortizes bonds discount by the effective interest method

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Reference no: EM131205831

Winner LTD. is authorized to issue $2 million of 3%, 10 year bonds payable. On December 31, 2014 when the market interest rate is 7% the company issues $1.6 million of the bonds. Winner LTD amortizes bonds discount by the effective interest method. The semi annual interest dates are June 30 and December 31. Using the PV function in excel calculate the issue price of the bonds

Reference no: EM131205831

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Amortizes bonds discount by the effective interest method : Winner LTD. is authorized to issue $2 million of 3%, 10 year bonds payable. On December 31, 2014 when the market interest rate is 7% the company issues $1.6 million of the bonds. Winner LTD amortizes bonds discount by the effective interest method. T..

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